What is the difference between a testamentary trust and an inter vivos trust? Choose the correct.a. A testamentary trust conveys money to a charity; an inter vivos trust conveys money to individuals.b. A testamentary trust is created by a will; an inter vivos trust is created by a living individual. c. A testamentary trust conveys income to one party and the principal to another; an inter vivos trust conveys all monies to the same party. d. A testamentary trust ceases after a specified period of time; an inter vivos trust is assumed to be permanent.

What is the difference between a testamentary trust and an inter vivos trust? Choose the correct.a. A testamentary trust conveys money to a charity; an inter vivos trust conveys money to individuals.b. A testamentary trust is created by a will; an inter vivos trust is created by a living individual. c. A testamentary trust conveys income to one party and the principal to another; an inter vivos trust conveys all monies to the same party. d. A testamentary trust ceases after a specified period of time; an inter vivos trust is assumed to be permanent.

Administration Of Wills/Trusts/ And Estates

5th Edition

ISBN:9781285281308

Author:Brown

Publisher:Brown

Chapter8: Trusts

Section: Chapter Questions

Problem 2SYPS

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What is the difference between a testamentary trust and an inter vivos trust. A testamentary trust conveys money to a charity; an inter vivos trust conveys money to individuals. A testamentary trust is created by a will; an inter vivos trust is created by a living individual. A testamentary trust conveys income to one party and the principal to another; an inter vivos trust conveys all monies to the same party. A testamentary trust ceases after a specified period of time; an inter vivos trust is assumed to be permanent.
Which of the following is a charitable lead trust? Choose the correct.a. The income of the trust fund goes to an individual until death, at which time the principal is conveyed to a charitable organization.b. Charitable gifts are placed into the trust until a certain dollar amount is achieved and is then transferred to a specified charitable organization.c. The income of a trust fund goes to a charitable organization for a specified time with the principal then being conveyed to a different beneficiary.d. A charity conveys money to a trust that generates income for the charity’s use in its various projects.
A charitable trust is used to split assets between surviving spouse and the trust. True or False
a. What is the difference between distributing property per capita and per stirpes? When would a per stirpes distribution be required? what are two ways in which the duties of an administrator differ from those of an executor? Must the grantor, trustee, and beneficiary of a trust all be different people? What formalities must be followed to create a testamentary trust?
Which of the following are correct statements about the nontax characteristics of a charitable lead trust? The income stream must be paid for the lifetime of the beneficiary. The grantor of the trust receives a charitable income tax deduction in the year the trust is funded. The trust must distribute the remainder interest in the corpus to a noncharitable beneficiary. The trust must distribute the remainder interest in the corpus to a charitable beneficiary. A) I and IV B) I and II C) II and III D) II and IV
2 how May a testamentary charitable trust be more beneficial to a donor than to an inter vivid charitable transfer?
In estate planning, setting ul a trust account in the name of beneficiaries may help to _______ a. Improve the faith of the beneficiaries b. Maximise the estate tax obligation c. Protect the beneficiaries against future inflation d. Protect the beneficiaries from the creditors of the donor
For the following definitions, indicate the type of trust being described by selecting the correct answer from the dropdown. option for answer - blind trust, life insurance trust, living (revocable) trust, divorce trust, trust for minors a. Holds life insurance policies on the insured. b. Provides funds for a college education or other needs, shifts income to other taxpayers, and transfers accumulated income without permanently parting with the underlying assets. c. Manages assets, reduces probate costs, provides privacy for asset disposition, protects against medical or other emergencies. d. Manages the assets of an ex-spouse.
Which of the following is a characteristic of a fixed trust? Select one:The trustee usually has discretion as to the timing of the distribution.Beneficiaries can compel payment of amounts to which they are presently entitled.All of the above are characteristics of fixed trusts.If the trustee has determined to distribute income to a beneficiary, actual receipt of that income is not required for it to be assessable for income tax purposes.None of these
which accurately describes a charitable trust? A charitable organization:
Assess the effect of an irrevocable trust on the gift tax and future estate taxes.
A donor gives a gift to a charity that must be conveyed to a separate beneficiary. What is the normal method of reporting for each party?