If a State Has Adopted the Revised Uniform Principal and Income

question 76

Multiple Choice

If a state has adopted the Revised Uniform Principal and Income Act, which of the following statements is correct?

• A)The state law definition of trust income will preempt any other definitions.
• B)The definition of trust income in the trust document will preempt all other definitions.
• C)Under state law, tax-exempt interest will not be allocated to income.
• D)The definition of principal in the trust document must classify capital gains as principal.

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Definitions:

Connotative Tone

The implied or suggested emotional meaning or association that words carry beyond their literal definition, affecting the message's tone.

Favorable Response

A positive reaction or reply to a request, question, or proposal.

Euphemistic Terms

Words or expressions used to talk about something unpleasant or embarrassing in a more pleasant or less direct way.

Readability

The ease with which text can be read and understood by readers, often influenced by writing style and layout.