A Trust Is Invalid If a Beneficiary Lacks Capacity

question 15

True/False

A trust is invalid if a beneficiary lacks capacity.

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Definitions:

Carrying Value

The net amount of an asset or liability that is recorded on the financial statements, taking into account factors like depreciation or amortization.

Dividend Revenue

Income earned from owning shares of a company, paid out from the company's earnings.

Cash Dividend

A cash payment of earnings made by a company to its stockholders.

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks.