When Can an Individual Act as a Trustee

question 26

Multiple Choice

When can an individual act as a trustee?

• A) When the individual has capacity to manage her own affairs.
• B) When the individual also is named as a beneficiary.
• C) When the individual is related to the settlor.
• D) When the individual is nominated for the position.

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Definitions:

Defined Benefit Plan

A pension plan that promises employees a fixed annual pension benefit at retirement, based on years of service and compensation levels.

Defined Contribution Plan

A retirement plan in which the employer, employee, or both make contributions on a regular basis, and the final benefits depend on the investment's performance.

SUTA Taxes

SUTA Taxes refer to State Unemployment Tax Act taxes, which employers pay to provide unemployment benefits to laid-off workers.

FUTA Taxes

Federal Unemployment Tax Act taxes, which are payroll taxes paid by employers to fund unemployment benefits.