A wealthier partner may establish a GRIT and name his partner as remainder beneficiary of the trust. Which statement is not characteristic of a GRIT?

Select one:

a.

A grantor can transfer a business interest to the trust.

b.

The taxable gift is equal to the value of the assets placed in trust.

c.

A GRIT can reduce transfer taxes and increase the less wealthy partners estate to utilize that partners $5,340,000 exclusion.

d.

A beneficiary does not pay gift taxes on trust property received after a grantors income interest ends.