Which of the Following Restrictions Applies Concerning Distributions to Trust

question 40

Multiple Choice

Which of the following restrictions applies concerning distributions to trust beneficiaries?

• A) Special allocations are not allowed under Subchapter J.
• B) Special allocations are allowed but only in the trust's termination year.
• C) Special allocations are allowed but only for portfolio income items.
• D) Special allocations of income types are allowed assuming that they carry a substantial economic effect.

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Definitions:

Sebum

An oily secretion of the sebaceous glands that helps lubricate and protect the skin and hair.

Tears

A clear liquid secreted by the lacrimal glands of the eye to lubricate the eyes and protect them from foreign particles.

Vitreous Humor

A clear gel that fills the space between the lens and the retina of the eyeball.

Presbyopia

A condition associated with aging in which the eye exhibits a progressively diminished ability to focus on near objects.