In 1998, Boyd Created a Trust That Would Become Effective

question 83

Essay

In 1998, Boyd created a trust that would become effective on his death.In the trust instrument, Boyd specified that all of the income from his stocks and bonds be used for the benefit of St.John's Hospital and indicated that his brother Chad should administer the trust.
a.What kind of trust is this?
b.What is Boyd with relationship to the trust?
c.What is the corpus of the trust?
d.What is Chad with relationship to the trust?

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Definitions:

Consumption

Domestic consumption of goods and services by households.

Autonomous Consumption

The level of consumption that occurs when income is zero, reflecting the basic level of spending necessary to sustain life.

Disposable Income

Available financial resources destined for household spending and saving upon deducting income taxes.

Saving

The process of setting aside a portion of current income for future use, typically to hedge against unexpected expenses, achieve financial goals, or secure a retirement.