When a Beneficiary Receives a Distribution from a Trust of an Asset

question 119

Short Answer

When a beneficiary receives a distribution from a trust of an asset other than cash, the realized loss generally is
(recognized, not recognized) by the trust.

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Definitions:

UCC Section 1-203

A principle under the Uniform Commercial Code emphasizing good faith and fair dealings in the performance and enforcement of commercial contracts.

Cash on Delivery (COD)

A transaction method where payment for goods is made at the time they are delivered rather than in advance.

Inspection Allowed

A provision in agreements that grants one party the right to examine goods, documents, or facilities before finalizing a transaction.

Conform

To act or be in accordance with established rules, standards, or laws.