Asked by
Ember Leifheit
on Dec 01, 2024
Verified
A trustee has a duty to make proper allocation of benefits and burdens between income beneficiaries and remaindermen. Which of the following statements is true concerning this allocation?
A) Current expenses are chargeable to the remaindermen.
B) Extraordinary expenses are chargeable to the remaindermen.
C) Money paid for the use of trust property is chargeable to the remaindermen.
D) Any profit from the use of trust property is allocated to the remaindermen.
Remaindermen
Individuals who have a future interest in property after the end of a life estate or other particular interest.
Income Beneficiaries
Individuals or entities entitled to receive income generated from a trust, estate, or other financial product.
- Differentiate between revocable and irrevocable trusts.
- Determine the tax responsibilities and implications for managing estates and trusts.
Verified Answer
AP
Learning Objectives
- Differentiate between revocable and irrevocable trusts.
- Determine the tax responsibilities and implications for managing estates and trusts.