Which of the Following Would Be a Benefit of Establishing

question 83

Multiple Choice

Which of the following would be a benefit of establishing a trust?

• A)It can reduce or provide for payment of estate taxes.
• B)It can allow you to avoid probate and transfer assets immediately to beneficiaries.
• C)It can free you from managing your assets while providing you a regular income.
• D)It can ensure that your property serves a desired purpose after you die.
• E)A trust can do all of these things.

---

Definitions:

Taxable Income

is the amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.

Federal Income Tax

A tax imposed by the federal government on personal and corporate income.

Warren Buffett

An American investor, business tycoon, philanthropist, and the chairman and CEO of Berkshire Hathaway, known for his successful investment strategies.

Average Tax Rate

The percentage of taxable income that is paid in taxes; taxes paid divided by taxable income.