Question Content Area

In $2014,$ Drew creates an irrevocable trust with $$1,000,000$ of securities$.$ Under the terms of the trust, Paula $($Drew$\text{'}$s wife$)$ is granted a life estate with remainder to their children. Drew makes a QTIP election as to the trust. Drew dies in $2016$ when the trust is worth $$1,500,000,$ and Paula dies in $2025$ when the trust is worth $$5,000,000.$ Which, if any, of the following is a correct statement?

a$.$ The trust is included in Drew's gross estate when he dies in $2016.$

b$.$ None of the trust is included in Paula's gross estate when she dies in $2025.$

c$.$ Drew does not get a marital deduction in $2014.$

d$.$ All of the value of the trust $($$$5,000,000)$ is included in Paula's gross estate when she dies in $2025.$