A Trustee Is Not Permitted to Profit Personally from the Position

question 50

True/False

A trustee is not permitted to profit personally from the position of trustee, other than to receive the compensation allowed by contract or law.

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Definitions:

Tax Purposes

The specific reasons or objectives for which tax-related decisions are made, including the filing of returns, claiming deductions, and planning strategies to minimize tax liabilities.

C Corporation

A corporate structure where the owners or shareholders are taxed separately from the entity, which itself is taxed on its earnings.

S Corporation

A type of corporation that meets specific Internal Revenue Code requirements, allowing profits, and some losses, to be passed directly to owners' personal income without being subject to corporate tax rates.

Legal Entity

An organization or structure with legal rights and obligations, including the capacity to enter into contracts, sue, and be sued.