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Olivia wants to set up a trust that will pay a fixed percentage to her favorite charity for 10 years. At the end of the
Olivia wants to set up a trust that will pay a fixed percentage to her favorite charity for 10 years. At the end of the 10-year trust term, the assets remaining in the trust will pass to her three grandchildren equally. The grandchildren are currently 9, 12, and 15 years old. Olivia plans to contribute securities having a total fair market value of $1 million to the trust. Which of the following trusts is (are) suitable for meeting Olivias objectives?
1. CRAT
2. CLUT
3. CLAT
4. Section 2503(b) minor's trust
A. | 4 only. |
B. | 2 only. |
C. | 2 and 3. |
D. | 1, 3, and 4. |
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