Which of the Following Statements Is False in Relation to the Difference

question 4

Multiple Choice

Which of the following statements is false in relation to the difference between a fully secret and half-secret trust?

• A) In a fully secret trust, neither the trust nor the beneficiaries of it are apparent from the terms of the will. In a half secret trust, the existence of the trust is apparent, but the beneficiaries are not.
• B) The burden of proof required of a fully secret trust is the same as that required for an allegation of fraud; the standard of proof necessary to establish a half-secret trust is the normal standard of civil proof on the balance of probabilities.
• C) On the failure of a fully secret trust, the intended trustee may keep the property for himself, whereas in a half secret trust, the intended trustee cannot do so.
• D) The rules for the creation of fully secret and half-secret trusts differ only in relation to the communication required by the testator to impose the fully or half-secret obligation on the beneficiary named under he will.

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Definitions:

Variable Overhead

Costs that fluctuate with the level of production or activity, such as utilities and raw materials expenditures.

Line-item Budgets

Budgets that list individual sources of income and expenses, providing a detailed financial overview for monitoring and planning.

Flexible Budgeting

An approach in budgeting that allows for adjusting budget allocations based on varying levels of activity or output.

Unfavorable Variance

A situation where actual costs exceed the standard or budgeted costs, often indicating inefficiencies or increased expenses.