Which of the following statements is false with regard to spousal trusts?

Multiple Choice

• The trust property is deemed to be sold at market value upon the death of the beneficiary (the spouse).

• Property is deemed to have been sold at its cost amount when transferred to the trust.

• Both the spouse and any adult children may receive the capital of the trust prior to the spouse's death.

• The 21-year rule is waived for the trust's first 21-year anniversary.

Subject: Canadian Income Taxation

Please provide reference for the answer you find because most of the answer I got incorrect.

Thanks