Classify each statement appearing below.
a. No taxable transfer occurs
b. Gift tax applies
c. Estate tax applies
-Darlene holds a special power of appointment over the income from a trust created by her brother. During the year, Darlene exercises the power in favor of one of the beneficiaries designated in the trust instrument.

Question

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The Answer of Classify each statement appearing below.
a. No taxable transfer occurs
b. Gift tax applies
c. Estate tax applies
-Darlene holds a special power of appointment over the income from a trust created by her brother. During the year, Darlene exercises the power in favor of one of the beneficiaries designated in the trust instrument.

Classify Each Statement Appearing Below