Income Accumulated in a Trust for a Child Less Than

question 30

True/False

Income accumulated in a trust for a child less than 19 is taxed at the parents' rates and not the trust's rates.

---

Definitions:

Maximize Profits

The process or strategy of adjusting production, pricing, and other operational variables to achieve the highest possible financial gain.

Time Inconsistency

The tendency of people to change their plans about future actions because of a change in their immediate preferences or circumstances.

Automatic Payroll Deductions

A system where amounts are automatically subtracted from an employee's paycheck by the employer for taxes, benefits, and other financial obligations.