When the Dan Addams family transferred assets and some income into a trust, they claimed that it was a charitable organization. The Addams Charitable Trust then proceeded to pay educational expenses for all the family's children, all insurance expenses for all family members, and season passes to several nonprofit theaters for the family. All payments were claimed as charitable contributions on the Trust's tax return. Which of the following statements is correct?

a. Any payments going to other nonprofits such as the theaters are legitimate charitable deductions.
b. The Addams Charitable Trust is an abusive trust since it is not a legitimate charitable trust.
c. This is a charitable trust and all trust payments should be deducted as charitable contributions.
d. This entity should be taxed as a legitimate partnership, not a trust.



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