Joe moves into an abandoned house in the middle of a suburban tract in Long Beach, CA with his family. They park their cars in the driveway, waive to the neighbors, play touch football in the front yard, do not pay rent, but pay property taxes. After 5years, Joe can take ownership of the property by

Which of the following is true concerning the 5/5 lapse rule? a) the 5/5 lapse rule deems that a taxable gift has been made where a power to withdraw in excess of $5,000 or five percent of the trust assets is lapsed by the powerholder. b) the 5/5 lapse rule only comes into play with a single beneficiary trust. c) amounts that lapse under the 5/5 lapse rule qualify for the annual exclusion. d) gifts over the 5/5 lapse rule do not have to be disclosed on a gift tax return.