Which one of the following statements best describes the most important feature of a support trust? A) Trust assets must revert to the grantor. B) It is created by the terms of a will and therefore does not become effective until death. C) It provides for the trustee to take over management of the grantor's assets only upon the occurrence or nonoccurrence of certain specified events. D) It provides that the trustee shall distribute only so much of the income or principal as the trustee deems necessary for the support of a named beneficiary.
Which one of the following statements best describes the most important feature of a support trust? A) Trust assets must revert to the grantor. B) It is created by the terms of a will and therefore does not become effective until death. C) It provides for the trustee to take over management of the grantor's assets only upon the occurrence or nonoccurrence of certain specified events. D) It provides that the trustee shall distribute only so much of the income or principal as the trustee deems necessary for the support of a named beneficiary.
Chapter28: Income Taxati On Of Trusts And Estates
Section: Chapter Questions
Problem 23P
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Which one of the following statements best describes the most important feature of a support trust?
A)
Trust assets must revert to the grantor.
B)
It is created by the terms of a will and therefore does not become effective until death.
C)
It provides for the trustee to take over management of the grantor's assets only upon the occurrence or nonoccurrence of certain specified events.
D)
It provides that the trustee shall distribute only so much of the income or principal as the trustee deems necessary for the support of a named beneficiary.
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