Which of the following does not accurately describe grantor trusts? A. Grantor trusts are treated similarly to single member LLC disregarded entities for income tax purposes. B. The items of income and deduction allocable to the grantor under these rules are reported as if earned/paid directly by the grantor on their Form 1040. C. To be treated as a grantor trust, the grantor must withdraw assets from the trust. D. A grantor who has the right to appoint beneficiaries is holding a power that will trigger treatment of the trust as a grantor trust.

Which of the following does not accurately describe grantor trusts? A. Grantor trusts are treated similarly to single member LLC disregarded entities for income tax purposes. B. The items of income and deduction allocable to the grantor under these rules are reported as if earned/paid directly by the grantor on their Form 1040. C. To be treated as a grantor trust, the grantor must withdraw assets from the trust. D. A grantor who has the right to appoint beneficiaries is holding a power that will trigger treatment of the trust as a grantor trust