Janice doesn't want to pay taxes on their estate or on gifts. What power can she attempt to use?

Question

Quizplus · Accepted Answer

For those who wish to avoid paying taxes on their estate or on gifts should attempt 5 or 5 power. The "5 or 5" power is useful for avoiding estate taxes as well as gifts, however the right of invasion must be made noncumulative. Property subject to a general power will be included in the estate of the holder only to the extent that the property that could have been appointed by the e The "5 or 5" power is useful for avoiding estate taxes as well as gifts, however the right of invasion must be made noncumulative. Property subject to a general power will be included in the estate of the holder only to the extent that the property that could have been appointed by the exercise of the power, but has lapsed, exceeds the greater of $5,000 or 5 percent of the total value of the funds subject to the power as valued at the time of the lapse.

Janice Doesn't Want to Pay Taxes on Their Estate or on Gifts