Q1 CFA I Mock 2011 - Trust

Hi,

in question 1 one should distinguish which trust is the most tax efficient for the sale of 1 MM. Why is it the revocable trust? The revocable trust is not exempt from estate taxes, but is exempt from capital gain taxes since the cost basis is raised. However, irrevocable trust is exempt from estate taxes

Why is the revocable trust more tax efficient?

Been discussed here: http://www.analystforum.com/forums/cfa-forums/cfa-level-iii-forum/91330128