If Lester died right now he would have a gross estate worth

If Lester died right now, he would have a gross estate worth $8 mil. Lester wants to assure that his taxable estate bears no estate tax. Further, he wants to provide for his wife\'s support needs for as long as she lives. However, Lester is reluctant to simply bequeath his entire estate to his wife, because he has children from a prior marriage to whom he wants his estate eventually to go. With this in mind, Lester wishes to have his entire estate to be transferred to a \"QTIP Trust\" when he dies, with his executor making a QTIP election such that there will be no estate tax on Lester\'s estate. Select the best answer to each of the following questions.

Referring to Lester’s QTIP Trust above, can Lester’s wife be allowed any access to the property of the trust (i.e., powers of appointment)? That is, can the beneficiary of a QTIP Trust be allowed to “invade corpus”? A. No, any power of appointment will result in the benefits of any QTIP planning being lost. B. Yes, a power of appointment is OK, as long as it is not a general power of appointment. C. None of the other answers is correct. D. Yes, any power of appointment is OK, including a general power of appointment.

Solution

ACTUALLY IT TOTALLY DEPENDS ON THE TRUSTS AGREEMENT AND CONDITIONS.BUT AS FAR AS THE CURRENT QUESTION DATA IS CONCERNED IT WILL BE A)-NO, ANY POWER OF APPOINTMENT WILL RESULT IN THE BENEFITS OF ANY QTIP PLANNING LOST..BECAUSE THERE IS NO MENTION OF ANY SUCH THING IN THE TRUSTS AGREEMENT.