Trusts are used for various purposes, but the most common reasons for using a trust to...
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Trusts are used for various purposes, but the most common reasons for using a trust to transfer assets from an estate are (1) to attain income and estate tax savings and (2) to conserve property over a long period of time. Consider the following scenarios: Alison and Eileen both created trusts but used different approaches: Alison created a trust in which she has the right to change its terms or even to cancel it. When Alison dies, the assets will be considered part of her estate. What kind of trust did Alison most likely create? O A revocable living trust O An irrevocable living trust An irrevocable life insurance trust A testamentary trust What kind of trust did Eileen most likely create? Eileen and her husband just retired. They intend to travel frequently and to enjoy their retirement without counting their pennies like they had to for many years. They created trusts for their minor grandchildren, to be funded with any money left over, but not until after they die.. O A revocable living trust O An irrevocable living trust A testamentary trust An irrevocable life insurance trust Amy and Madeline both created trusts but used different approaches: What kind of trust did Amy most likely create? An irrevocable life insurance trust Alison Amy is a wealthy individual who has created a trust in which the primary asset is life insurance on her life. Amy has named the trustee as the beneficiary of the trust in order to avoid having the proceeds of the insurance policy included in her own estate. The trustee will then use the proceeds to pay for Amy's estate taxes and to help take care of her spouse. Eventually, the remainder of the proceeds will be distributed to Amy's children. O A revocable living trust A testamentary trust O An irrevocable living trust Eileen hat kind of trust did Madeline most likely create? O A testamentary trust O An irrevocable living trust O A revocable living trust O An irrevocable life insurance trust Amy Madeline is a successful professional who has three competitive children. To avoid fueling sibling rivalry, Madeline created separate trusts for each child with the same amount of money funding each trust, available on the child's twenty-first birthday, whether Madeline is dead or alive. Madeline has no power to change the terms of the trusts regardless of how her children conduct their lives. Madeline Trusts are used for various purposes, but the most common reasons for using a trust to transfer assets from an estate are (1) to attain income and estate tax savings and (2) to conserve property over a long period of time. Consider the following scenarios: Alison and Eileen both created trusts but used different approaches: Alison created a trust in which she has the right to change its terms or even to cancel it. When Alison dies, the assets will be considered part of her estate. What kind of trust did Alison most likely create? O A revocable living trust O An irrevocable living trust An irrevocable life insurance trust A testamentary trust What kind of trust did Eileen most likely create? Eileen and her husband just retired. They intend to travel frequently and to enjoy their retirement without counting their pennies like they had to for many years. They created trusts for their minor grandchildren, to be funded with any money left over, but not until after they die.. O A revocable living trust O An irrevocable living trust A testamentary trust An irrevocable life insurance trust Amy and Madeline both created trusts but used different approaches: What kind of trust did Amy most likely create? An irrevocable life insurance trust Alison Amy is a wealthy individual who has created a trust in which the primary asset is life insurance on her life. Amy has named the trustee as the beneficiary of the trust in order to avoid having the proceeds of the insurance policy included in her own estate. The trustee will then use the proceeds to pay for Amy's estate taxes and to help take care of her spouse. Eventually, the remainder of the proceeds will be distributed to Amy's children. O A revocable living trust A testamentary trust O An irrevocable living trust Eileen hat kind of trust did Madeline most likely create? O A testamentary trust O An irrevocable living trust O A revocable living trust O An irrevocable life insurance trust Amy Madeline is a successful professional who has three competitive children. To avoid fueling sibling rivalry, Madeline created separate trusts for each child with the same amount of money funding each trust, available on the child's twenty-first birthday, whether Madeline is dead or alive. Madeline has no power to change the terms of the trusts regardless of how her children conduct their lives. Madeline
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Alsion Revocable living Trusts Revocable trusts are created during the lifetime of the trustmaker an... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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