In Which of the Following Situations Will the Grantor Trust

question 48

Multiple Choice

In which of the following situations will the grantor trust rules apply?

• A)The trust is revocable and mandates the distribution of income to the named beneficiary.
• B)The trust is irrevocable, and the trustee, who is also the grantor, has the power to distribute or accumulate income for the named beneficiary.
• C)The trust is irrevocable, the income must be paid out currently, and the trust assets will revert to the grantor at the end of nine years.
• D)The grantor trust rules will apply in each of the situations.

---

Definitions:

Puff of Air

A brief blast of air used in various psychological and medical tests, often to gauge the blink reflex or to administer certain substances.

Operant Conditioning

A type of learning in which behavior is strengthened if followed by a reinforcer or diminished if followed by a punisher.

Batteries

Devices consisting of one or more electrochemical cells that store and provide electrical energy by converting chemical energy.

Instruction

The act or process of teaching or providing knowledge to someone, often involving a systematic method or approach to imparting information.