Which of the following correctly describes a benefit of an intentionally-defective grantor trust?

A) Transfers to the trust are not subject to gift tax at the time the trust is created. Instead the value of the assets are included in the grantor's gross estate.

B) The grantor retains the right to cancel the trust at any time and take back possession of the assets.

C) Income from the trust is taxed at trust and estate rates.

D) The increase in value between the time the trust is funded and the grantor's death is exempt from gift or estate taxes.