Which of the Following Statements Exemplifies the Ability of a Settlor

question 9

Multiple Choice

Which of the following statements exemplifies the ability of a settlor to use a trust to in relation to levels of taxation?

• A) A trust can be used to avoid any tax payments whatsoever.
• B) A trust can be used to help reduce any tax payments, but it is increasingly difficult to do so
• C) A trust can only be used to avoid or minimise payments of inheritance tax.
• D) A trust can be used to minimise liability to all taxes, except capital gains tax.

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Definitions:

Total Utility

The overall contentment derived from the consumption of a specific number of goods or services.

Utility

The complete fulfillment experienced when consuming a product or service.

Marginal Utility

The extra pleasure a customer receives from consuming an additional unit of a product or service.