A father wants to accumulate funds for his 12-year-old son's college education. On the advice of his attorney, the father establishes an IRC Section 2503(c) trust and funds it with annual gifts. All the following statements concerning this arrangement are correct EXCEPT:
Which of the following statements concerning ownership of property held in trust is (are) correct?
l. The legal owner of property held in trust is a trustee.
lI. The equitable owner of property held in trust is a beneficiary.
Which of the following items of property will be included in a decedent's gross estate for federal estate tax purposes?
l. The value of property subject to a general power of appointment that the decedent possessed at death
II. The value of all gratuitous lifetime transfers of property made within 3 years of death
Which of the following statements concerning estates and trusts is (are) correct?
l. Both estates and trusts come into being by operation of law.
II. The personal representative of an estate and the trustee have similar fiduciary responsibilities.
Which of the following statements concerning a general power of appointment is (are) correct?
l. A general power of appointment is a power over property so broad that it approaches actual ownership or control over the property subject to the power.
II. The property subject to a general power of appointment will be includible in the gross estate of the holder of the power it held until death.