In Which of the Following Situations Will the Grantor Trust

question 48

Multiple Choice

In which of the following situations will the grantor trust rules apply?

• A)The trust is revocable and mandates the distribution of income to the named beneficiary.
• B)The trust is irrevocable, and the trustee, who is also the grantor, has the power to distribute or accumulate income for the named beneficiary.
• C)The trust is irrevocable, the income must be paid out currently, and the trust assets will revert to the grantor at the end of nine years.
• D)The grantor trust rules will apply in each of the situations.

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Definitions:

Psychoanalysis

A therapeutic approach founded by Sigmund Freud that aims to explore unconscious motivations and conflicts thought to influence behavior through techniques such as free association and dream analysis.

Counterconditioning

A therapy technique whereby an undesirable behavior is replaced with a more desirable one by associating the undesirable stimulus with a positive one.

Behavior Modification

The use of empirical and experimental methods to change or modify human behavior through various techniques and interventions based on principles of learning.

Token Economy

A behavioral modification technique based on systematic reinforcement using tokens that can be exchanged for desired items or privileges.