In which of the following situations will the grantor trust rules apply?
A. The trust is revocable and mandates the distribution of income to the named beneficiary.
B. The trust is irrevocable, the income must be paid out currently, and the trust assets will revert to the grantor at the end of nine years.
C. The trust is irrevocable, and the trustee, who is also the grantor, has the power to distribute or accumulate income for the named beneficiary.
D. The grantor trust rules will apply in each of the situations.
Answer: D
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