A Sec. "2503(c)trust

question 93

Multiple Choice

A Sec. "2503(c) trust"

• A)is a discretionary trust for a beneficiary of any age.
• B)is intended for beneficiaries over the age of 20.
• C)requires distribution of trust assets to the beneficiary at age 21.
• D)can be formed only by the parent(s)of the beneficiaries.

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Definitions:

Redeemed

The process of exchanging a financial instrument or coupon for its value in money or goods.

Inflation

The speed at which the overall price level of goods and services increases, leading to a decrease in buying power.

Bond

A financial tool that signifies a lending agreement where an investor lends money to a borrower, usually a company or government entity, guaranteeing a fixed return.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.