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All of the Following Are Advantages of a Sprinkling Trust

question 67

Essay

All of the following are advantages of a sprinkling trust, except
A) the trustee can determine the amount to retain in the trust.
B) the trustee can consider the tax rates of the beneficiaries and trust.
C) the trustee can choose the amount to distribute among multiple beneficiaries.
D) the trustee can determine the amount to distribute to the sole trust beneficiary.


Definitions:

Salaries Payable

An account representing the amounts owed to employees for work performed but not yet paid.

Price/Earnings Ratio

A valuation metric for a stock, calculated by dividing the market price per share by the earnings per share.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Long-Run Safety

The assurance of safety and risk reduction measures over an extended period, aiming for sustainable protection against accidents or harm.

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