Winston Is Classified as a Grantor Trust Because Harry, the Donor

question 74

True/False

Winston is classified as a grantor trust because Harry, the donor, can revoke the trust. Consequently, Winston need not file an annual Form 1041, and Harry reports the trust items on his own Form 1040.

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Definitions:

Congruent

In agreement or harmony; matching or fitting together well.

Abstract Level

The degree to which an idea, statement, or concept is general, non-specific, and divorced from specific instances or practical application.

Value

The importance, worth, or usefulness of something, often guiding principles or standards of behavior for individuals or societies.

Attitude

A settled way of thinking or feeling about something, typically reflected in a person's behavior.