In 1985, Drew Creates a Trust with $1,000,000 of Securities

question 90

Multiple Choice

In 1985, Drew creates a trust with $1,000,000 of securities. Under the terms of the trust, Paula (Drew's wife) is granted a life estate with remainder to their children. Drew makes a QTIP election as to the trust. Drew dies in 1992 when the trust is worth $1,500,000, and Paula dies in 2013 when the trust is worth $2,000,000. Which, if any, of the following is a correct statement?

• A) The trust is included in Drew's gross estate when he dies in 1992.
• B) None of the trust is included in Paula's gross estate when she dies in 2013.
• C) Drew does not get a marital deduction in 1985.
• D) All of the value of the trust ($2,000,000) is included in Paula's gross estate when she dies in 2013.
• E) None of the above.

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Definitions:

FAB Approach

An approach to selling that emphasizes the Features, Advantages, and Benefits of a product or service, aimed at persuading customers by highlighting its unique value.

Customer-Oriented Selling

The adoption of the marketing concept at the level of the individual salesperson and customer.

Customer-Oriented

This concept involves prioritizing customer needs and satisfaction in all aspects of a company’s operations and decision-making processes.

Feature-Advantage-Benefit Approach

A sales strategy that involves highlighting a product's features, explaining their advantages, and demonstrating how they provide benefits to the customer.