An Income Interest in a Trust

question 52

Multiple Choice

An income interest in a trust

• A)must be established for a fixed term in years.
• B)is not eligible for the annual exclusion.
• C)must be irrevocable to be eligible for the annual exclusion.
• D)is irrevocable if the donor only controls who may receive trust income.

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Definitions:

Final-offer Arbitration

A conflict resolution process where each party presents its final offer, and the arbitrator chooses one of these offers as the solution.

Mandatory Items

Requirements or objects that are obligatory and must be included or complied with.

Bargaining Session

A scheduled meeting between parties, such as employers and employees, to negotiate terms and conditions, often related to employment or trade agreements.

Contract Negotiations

The process of discussing terms and details to reach a mutual agreement in a contract, often involving aspects like salary, work conditions, and other employment terms.