Arnold, age 75, established an irrevocable trust to benefit his grandson, Randolph. Randolph will receive trust income annually until he reaches the age of 30. The trust will then terminate and all the principal of the trust will be distributed to Ashley, Arnold's 30 year old wife. Which of the following statement(s) is / are correct regarding Generation Skipping Transfer Tax (GSTT)? 1. If Randolph's father (Arnold's son) is deceased at the time the irrevocable trust is established, then Randolph is a nonskip person. II. If Ashley is not the spouse of Arnold when the trust terminates, then she is a skip person. A. I only. B. II only.

Arnold, age 75, established an irrevocable trust to benefit his grandson, Randolph. Randolph will receive trust income annually until he reaches the age of 30. The trust will then terminate and all the principal of the trust will be distributed to Ashley, Arnold's 30 year old wife. Which of the following statement(s) is / are correct regarding Generation Skipping Transfer Tax (GSTT)? 1. If Randolph's father (Arnold's son) is deceased at the time the irrevocable trust is established, then Randolph is a nonskip person. II. If Ashley is not the spouse of Arnold when the trust terminates, then she is a skip person. A. I only. B. II only.