If a Trust Qualifies as a Spousal Trust,which of the Following

If a trust qualifies as a spousal trust,which of the following does not apply?

A) Property is deemed to have been sold at its cost amount when transferred to the trust.
B) Upon the death of the surviving spouse, the trust property is deemed to be sold at market value.
C) Both the spouse and any adult children can receive the capital of the trust prior to the settlor's death.
D) In many situations, the assets in the trust remain tax-free until the death of the surviving spouse due to the waiver of the 21-year rule at the first 21-year anniversary.