1. Roger creates a revocable living trust and contributes $1 million in securities to it. He names a local bank as a trustee. During Roger's life, the trustee has the discretion to distribute income and principal to Roger. Any principal remaining at Roger's death is distributed to Roger's niece, Julie. Which of the following is correct?

 

1. When Roger dies, the trust assets will be included in his probate estate.

2. The trust income will be taxed to Roger during his lifetime.

3. Julie has a remainder interest in the trust.

4. Roger's trust is a simple trust.

 

		2, 3, and 4
		1, 2, and 3
		4 only
		2 and 3

Answer rating: 100% (QA)

Solution 1Statement 1 is incorrect since assets will be pss as per trust terms ... View the full answer