A Trust That Is Established in a Person's Will and That

question 50

Multiple Choice

A trust that is established in a person's will and that takes effect only upon that person's death is called a(n) :

• A)inter vivos trust.
• B)spendthrift trust.
• C)Totten trust.
• D)testamentary trust.

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Definitions:

Tax-exempt Interest

Interest income that is not subject to federal income tax, often received from bonds issued by state and municipalities.

Bonds Issued

Debt securities released by entities such as corporations or governments to raise capital.

Local Government

The administration governing a specific local area such as a city, town, or county, responsible for providing local services and infrastructure and may have its own tax collection policies.

Behavioral Leadership

A leadership style that focuses on understanding and managing the actions and interactions of team members to effectively lead an organization.