A Trust Designed to Help Couples Gain Full Use Out

question 31

Multiple Choice

A trust designed to help couples gain full use out of each spouse's applicable exclusion amount is the _____ trust.

• A)crummey
• B)credit shelter
• C)charitable lead
• D)special needs
• E)charitable remainder

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Definitions:

Accounting Principles

Guidelines and rules that govern the process of reporting financial information and preparing financial statements.

Deferred Tax Asset

An item on a company's balance sheet that is used to decrease future tax liability due to temporary timing differences in income recognition.

Warranty Costs

Expenses incurred by a company for repairing, replacing, or refunding products that have failed within the warranty period.

Income Tax Rate

The income tax rate is the percentage at which an individual or corporation is taxed on their income, varying by jurisdiction and income level.