Wendy is the settlor of a discretionary trust into which she settled $300,000. Income and capital beneficiaries of the trust include Wendy and her two adult children. Wendy is also the sole trustee. Given this arrangement, who-is responsible for the tax on the income earned by the trust? The trustee can elect to have either the trust assume responsibility for the tax on the income or to allocate responsibility for the tax equally to the three beneficiaries. Wendy. The trust. Wendy and her two children, in equal proportions.
Wendy is the settlor of a discretionary trust into which she settled $300,000. Income and capital beneficiaries of the trust include Wendy and her two adult children. Wendy is also the sole trustee. Given this arrangement, who-is responsible for the tax on the income earned by the trust? The trustee can elect to have either the trust assume responsibility for the tax on the income or to allocate responsibility for the tax equally to the three beneficiaries. Wendy. The trust. Wendy and her two children, in equal proportions.
Chapter28: Income Taxati On Of Trusts And Estates
Section: Chapter Questions
Problem 15CE
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Wendy is the settlor of a discretionary trust into which she settled
$300,000. Income and capital beneficiaries of the trust include Wendy
and her two adult children. Wendy is also the sole trustee. Given this
arrangement, who-is responsible for the tax on the income earned by
the trust?
hois
The trustee can elect to have either the trust assume
U responsibility for the tax on the income or to allocate
responsibility for the tax equally to the three beneficiaries.
Wendy.
The trust.
Wendy and her two children, in equal proportions.
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