Which of the Following Is a True Statement

Which of the following is a true statement?

A) Leaving all property to the surviving spouse maximizes the marital deduction and therefore minimizes total transfer taxes on the estates of both spouses.
B) A bypass provision in the will of the deceased spouse is designed to use the applicable credit of the deceased spouse by transferring property to beneficiaries other than the surviving spouse.
C) Serial gifts are limited in scope because only $10,000 can be transferred each year tax-free to any specific donee.
D) Serial gifts can move significant amounts of wealth only if employed by multiple donors.
E) None of the choices are true.
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
109) Andrea transferred $500,000 of stock to a trust, with income to be paid to her niece for 20 years (value $125,000) and the remainder tobe paid to her nephew (value $375,000) . Andrea named a bank as independent trustee but retained the power to determine how much income, if any, will be paid in any particular year. What is the amount of the taxable gift, if any? Explain your answer.