4. Which of the following is not true concerning defective grantor trusts?,A. The income tax paid by the grantor is an additional gift to the trust beneficiaries. ,B. The income tax brackets applied to trusts are generally less favorable than the income tax brackets applied to the grantor.,C. If the grantor is not reimbursed by the trust for income tax, assets owned within the trust effectivley grow income tax free.,D. The trust can contain a provision directing the Trustee to reimburse the Grantor for any income tax paid on distributions not received by the Grantor. ,,5. To avoid inclusion of assets owned within a defective trust in the gross estate of the grantor, which of the following trust powers should not be given to the grantor? ,I. A reversionary interest of less than 5%. ,II. Power to retain income.,III. Power to vote stock placed within the trust.,A. I only,B. I and III,C. II and III,D. I, II and III,
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