Which of the Following Is True About Trusts

question 42

Multiple Choice

Which of the following is true about trusts?

• A) They can become effective only after the settlor dies.
• B) The trust beneficiary has equitable title to the trust res, but not legal title.
• C) The trust documents are a matter of public record.
• D) The trust "corpus" refers to the person or persons who receive the trust property.
• E) The beneficiary is responsible for collecting money owed to the trust, paying trust taxes, and maintaining proper trust records.

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Definitions:

Inventory

The goods and materials that a business holds for the ultimate purpose of resale or production.

Accounts Payable

Refers to the amounts due by a company to its creditors for goods or services received that have not yet been paid for.

Operating Activities

Transactions and other events related to the core business functions of an entity, generally involving the production, sales, and delivery of goods and services.