1. If an employee participates in a Section 162 plan, the proceeds of the life insurance policy:

a. Will not be included in his gross estate at his death because one of the plan requirements is that the beneficiary be named irrevocably.

b. Must be paid directly to his estate.

c. Will be included in his gross estate since he owned the policy at his death.

d. Will likely qualify for the estate tax charitable deduction.

2. The principal advantage of using a GRAT or GRUT is to:

a. Remove property from the grantor's estate if the grantor dies during the trust term.

b. Provide for discretionary distributions during the trust term.

c. Make gifts which qualify for the annual exclusion.

d. Obtain a discounted value for the remainder interest.