A Trustee Has a Duty to Make Proper Allocation of Benefits

question 72

Multiple Choice

A trustee has a duty to make proper allocation of benefits and burdens between income beneficiaries and remaindermen. Which of the following statements is true concerning this allocation?

• A) Current expenses are chargeable to the remaindermen.
• B) Extraordinary expenses are chargeable to the remaindermen.
• C) Money paid for the use of trust property is chargeable to the remaindermen.
• D) Any profit from the use of trust property is allocated to the remaindermen.

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Definitions:

Total Overhead Variance

The difference between the actual overhead incurred and the standard overhead allocated for actual production.