A Simple Trust

question 16

Multiple Choice

A simple trust

• A) may make charitable distributions.
• B) is required to distribute all of its income currently.
• C) may make discretionary distributions of principal.
• D) may accumulate income.

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Definitions:

Assignment

The act of moving ownership, possessions, or duties from one individual to another.

Bilateral Contract

A contractual agreement involving two parties where each promises to perform an act in exchange for the other's act.

Obligor

A person or entity legally obligated to provide a payment or service to another under the terms of a contract.

Assignment

The transfer of rights, duties, or interests under a contract or agreement from one party to another.