Which of the Following Statement Is True in Relation to the Operation

question 5

Multiple Choice

Which of the following statement is true in relation to the operation of secret trusts?

• A) Secret trusts are trusts made in wills in which the trustees and beneficiaries are concealed from everyone until the operation of a secret event.
• B) Secret trusts provide a mechanism for testator to leave property to a named beneficiary, who is then under an enforceable obligation to pass it on to another, unnamed beneficiary.
• C) Secret trusts provide a means to provide for someone to conceal gifts to others during the lifetime of the settlor.
• D) In a secret trust, the beneficiaries and trustees are known, but the beneficiaries are only entitled on the happening of a secret event.

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Definitions:

Deflation

A decrease in the general price level of goods and services, often indicating an economic decline.

Consumers

Individuals or groups that purchase or use goods and services generated within the economy.

Retailers

Businesses or individuals engaged in the selling of goods or merchandise directly to consumers, typically in small quantities.

Cyclical Unemployment

The increase in unemployment that occurs during recessions and downturns in the economic cycle, typically resulting from a decreased demand for goods and services.