The Characteristics of a Spendthrift Trust Include Which of the Following

question 91

Multiple Choice

The characteristics of a spendthrift trust include which of the following?

• A)Spendthrift provisions are not valid in most states.
• B)Trust creditors can never seize income from a spendthrift trust.
• C)A settlor may provide, in a spendthrift trust, that the beneficiary cannot, by assignment or otherwise, impair her rights to receive principal or income.
• D)All of the above.

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Definitions:

Profit Margin

A financial metric used to assess a company's profitability by comparing net income to sales. It's often expressed as a percentage indicating how much of each dollar in sales a company keeps as profit.

Equity Multiplier

A ratio of financial leverage showing the portion of a company's assets financed through shareholders' equity.

Statement Of Financial Position

Financial statement showing a firm’s accounting value on a particular date. Also known as a balance sheet.

Statement Of Comprehensive Income

Financial statement summarizing a firm’s performance over a period of time. Formerly called an income statement.