Which Type of Trust Is Designed to Take Effect on the Completion

question 75

Multiple Choice

Which type of trust is designed to take effect on the completion of a specified behavior?

• A) Constructive
• B) Family incentive
• C) Implied
• D) Involuntary
• E) Living

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.

Fair Value

The cost incurred or received during the sale of an asset or transfer of a liability in a systematic transaction among market actors on the valuation date.

Undervalued

An economic condition where the market price of an asset falls short of its intrinsic or real value as evaluated by investors.

Overvalued

A descriptor for an asset or stock whose price is believed to be higher than its intrinsic value.