Which of the Following Is True of a Testamentary Trust

question 4

Multiple Choice

Which of the following is true of a Testamentary trust?

• A)It does not protect your assets from the probate process.
• B)It is valuable for experienced beneficiaries.
• C)It becomes effect upon your signature.
• D)It is not established by your will.
• E)It does not provide the benefit of asset management.

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Definitions:

Deadweight Loss

A reduction in economic effectiveness that happens when a good or service fails to reach or cannot reach its equilibrium.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price.

Elastic

A characteristic of supply or demand that indicates a high sensitivity to changes in price.

Inelastic

Describes a situation where a change in price leads to a relatively small change in the quantity demanded or supplied.