As the Trustee Owns the Trust Property on Behalf of the Beneficiaries

question 1

Multiple Choice

As the trustee owns the trust property on behalf of the beneficiaries, the trust property is not available to the trustee's creditors in the event of:

• A)bankruptcy only.
• B)death of the trustee.
• C)liquidation only.
• D)bankruptcy or liquidation.

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Definitions:

General Goals

Broad, overall objectives or aims that an individual, group, or organization seeks to achieve.

Bankruptcy

A legal status of a person or entity that cannot repay the debts it owes to creditors, often leading to a legal process for debt relief.

Shelter Principle

The principle that when an item is transferred, the transferee acquires all the rights the transferor had to the item.

Marketability

The ease with which a product or service can be sold in the market due to its demand, utility, and competitive pricing.