$($Case Study Question$)$

All of the following statements regarding charitable remainder annuity trusts $($CRATs$)$ and charitable remainder unitrusts $($CRUTs$)$ are CORRECT except

A$)$

the remainder beneficiary is a charity.

B$)$

they may be established as revocable trusts.

C$)$

the remainder interest at inception must be greater than or equal to $10\%$ of the original value of the property transferred to the trust.

D$)$

the annual payout to an income beneficiary may not exceed $50\%$ of the value of the trust.