Susan creates a charitable remainder trust into which she transfers $1 million cash. Susan retains a 20-year unitrust interest, which is valued at $500,000. When is Susan able to take her $500,000 charitable deduction?
a. $500,000 deduction is taken in the year the trust is funded.
b. $250,000 deduction is taken in the year the trust is funded; $250,000 deduction taken at the end of the 20 years.
c. $500,000 deduction taken at the end of the unitrust interest.
d. Cannot determine since a unitrust requires an annual valuation of the trust assets.