In contrast to the charitable remainder trust, the charitable lead trust receives an income interest from the donor instead of a remainder interest. Which of the following statements concerning the advantages of the charitable lead trust created for a period of ten years or less is (are) correct?
I It provides a large current deduction that will be advantageous to the taxpayer who has an unusually high-income year.
II It provides for reversion of the principal to the taxpayer or other designated beneficiary.
III It provides for a substantial reduction in income taxes for the taxpayer by shifting the tax liability to the trust.
A. I only
B. II only
C. III only
D. I and II only
Provide a detailed explanation. This is estate planning.