Which of the following statements is false with regard to spousal trusts?
A)Property is deemed to have been sold at its cost amount when transferred to the trust.
B)The trust property is deemed to be sold at market value upon the death of the beneficiary (the spouse).
C)Both the spouse and any adult children may receive the capital of the trust prior to the spouse's death.
D)The 21-year rule is waived for the trust's first 21-year anniversary.

Question

Quizplus · Accepted Answer

The false statement regarding spousal trusts is that both the spouse and any adult children may receive the capital of the trust prior to the spouse's death. In a spousal trust, typically only the spouse is entitled to receive the income and sometimes the capital of the trust during their lifetime.

Which of the Following Statements Is False with Regard to Spousal