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:

Bowman's Capsule

A cup-like sack at the beginning of the tubular component of a nephron in the kidney that performs the first step in the filtration of blood to form urine.

Glomerulus

A network of tiny blood vessels located within the kidney that functions in the filtration process of blood to form urine.

Proximal Convoluted

Refers to the Proximal Convoluted Tubule, a part of the nephron in the kidney involved in the reabsorption of water and ions from the filtrate.

Bowman's Capsule

A sac resembling a cup located at the start of the nephron’s tubular part in the kidney, which carries out the initial process of filtering blood to produce urine.