Which of the Following Statements Does Not Apply to a Revocable

question 46

Multiple Choice

Which of the following statements does not apply to a revocable trust?

• A)The grantor of the trust is taxed on trust income.
• B)The trust property is included in the grantor's gross estate.
• C)Revocable trusts are all simple trusts.
• D)The grantor makes a gift when the trust distributes trust income to a beneficiary.

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Definitions:

Legal Assent

A promise to buy or sell that the courts will require that the parties obey.

Mutual Mistake

The result of an error by both parties about a material fact, i.e., one that is important in the context of a particular contract.

Fraudulent Misrepresentation

The act of intentionally making false statements to induce another party to enter into a contract, resulting in harm or damage.

Intentional Misrepresentation

Deliberate false statement by one party aimed at getting another party to enter into an agreement.