The Prakash Trust Is Required to Pay Its Entire Annual

question 89

Multiple Choice

The Prakash Trust is required to pay its entire annual accounting income to beneficiaries Sam and Janet. The trust's personal exemption is:

• A) $0.
• B) $100.
• C) $300.
• D) $600.

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Definitions:

Immediate Possession

Immediate possession refers to a legal situation where an individual or entity has the right to take control of a property or asset without delay.

Hayfield

A field where hay is grown, usually for agricultural purposes such as feeding livestock.

Reversion

A return to a previous state or condition.

Vested Remainder

A future interest in property that is certain to occur, provided the current estate terminates, and is not subject to any conditions precedent.