Dan Daytona has created a revocable contingent trust to handle his financial affairs when and if he becomes incompetent. He has named his brother as trustee and has given his brother a durable springing power of attorney to use in funding the trust. Which of the following statements regarding this trust arrangement are correct? Dan has given his brother a general power of appointment. Dan’s brother can use the durable power of attorney at any time. Dan will not owe a gift tax when the trust is funded. Dan’s brother can use the durable power of attorney to place any remaining assets in the trust at Dan’s death to avoid probate. III only I and III only II and IV only I, II, and IV only
Ma1.
Dan Daytona has created a revocable contingent trust to handle his financial affairs when and if he becomes incompetent. He has named his brother as trustee and has given his brother a durable springing power of attorney to use in funding the trust.
Which of the following statements regarding this trust arrangement are correct?
Dan has given his brother a general power of appointment.
Dan’s brother can use the durable power of attorney at any time.
Dan will not owe a gift tax when the trust is funded.
Dan’s brother can use the durable power of attorney to place any remaining assets in the trust at Dan’s death to avoid probate.
III only
I and III only
II and IV only
I, II, and IV only
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
