5. John creates an irrevocable trust into which he transfers income producing property. The trust provides income to his children for life; remainder to the grandchildren. John has appointed his wife, Sue, as the Trustee of the trust. Sue, as the Trustee, is given the power to apply trust income to purchase life insurance on John’s life. Who is responsible for the payment of the income tax liability attributed to the trust income? ,A. Sue, as an individual. ,B. The children and grandchildren as trust beneficiaries. ,C. Sue, as the Trustee, and the children and grandchildren based upon the DNI calculation. ,D. John, as the Grantor of the trust. ,
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