Question: Rick established an irrevocable trust and funded it with $ 1 million. A corporate trustee is authorized to make distributions from the trust for the

Rick established an irrevocable trust and funded it with $

1

million. A corporate trustee is authorized to make distributions from the trust for the health, education, maintenance, or support of Rick's descendants. At the creation of the trust, Rick had three children and eight grandchildren.

Which one of the following statements is correct regarding the consequences of this transfer?

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