The Characteristics of a Spendthrift Trust Include Which of the Following

question 2

Multiple Choice

The characteristics of a spendthrift trust include which of the following?

• A) Spendthrift provisions are not valid in most states.
• B) Trust creditors can never seize income from a spendthrift trust.
• C) A settlor may provide, in a spendthrift trust, that the beneficiary cannot, by assignment or otherwise, impair her rights to receive principal or income.
• D) All of these.

---

Definitions:

Sales Mix

Sales mix is the proportion of different products or services that a business sells, impacting the overall profitability based on the differing margins of each item.

Operating Income

Profit realized from a business's core operations, calculated before taxes and interest.

Contribution Margin Ratio

A financial metric showing the percentage of sales revenue remaining after variable production costs have been deducted, indicating how much contributes towards covering fixed costs and generating profits.

Net Operating Income

Profit generated from a company's regular business operations, excluding deductions for interest and taxes.