Which of the following is not a valid reason for creating an irrevocable gift trust?

Question

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An irrevocable living trust is primarily used for estate planning purposes, such as passing assets free from federal estate taxes (B), distributing income to selected beneficiaries (C), and specifying inheritance of the principal upon death (D). However, it does not enable assets to pass free from federal income taxes (A), as income generated by trust assets is typically subject to income tax either at the trust level or the beneficiary level, depending on the trust's design and distribution provisions.

Which of the Following Is Not a Valid Reason for Creating