has the following objectives: To provide his wife with an annual income stream that will be hers automatically without making a request of the trustee To provide his wife with additional income based upon her needs and the trustee's discretion To prevent his wife from invading the principal To be assured that his children from his current marriage and his prior marriage share in his wealth equally after his wife's death To enable his executor to make full use of his estate tax applicable credit amount Based on Lloyd's objectives,
has the following objectives: To provide his wife with an annual income stream that will be hers automatically without making a request of the trustee To provide his wife with additional income based upon her needs and the trustee's discretion To prevent his wife from invading the principal To be assured that his children from his current marriage and his prior marriage share in his wealth equally after his wife's death To enable his executor to make full use of his estate tax applicable credit amount Based on Lloyd's objectives,
Chapter20: Income Taxation Of Trusts And Estates
Section: Chapter Questions
Problem 32P
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Question
Lloyd is restructuring his estate plan. He has the following objectives:
- To provide his wife with an annual income stream that will be hers automatically without making a request of the trustee
- To provide his wife with additional income based upon her needs and the trustee's discretion
- To prevent his wife from invading the principal
- To be assured that his children from his current marriage and his prior marriage share in his wealth equally after his wife's death
- To enable his executor to make full use of his estate tax applicable credit amount
Based on Lloyd's objectives, which one of the following is the most appropriate trust or combination of trusts?
A)
Combination B trust and qualified terminable interest property (QTIP) trust
B)
Family bypass (B) trust
C)
Outright bequest to his wife
D)
Power of appointment (A) trust
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