A Distinguishing Feature Between the Making of an Inter Vivos

question 20

Multiple Choice

A distinguishing feature between the making of an inter vivos gift and the creation of a trust is that:

• A) a gift may be made orally whereas a trust must be in a signed writing.
• B) a gift is irrevocable whereas a trust may be revoked in certain cases.
• C) in order to create a valid trust,the creator must receive some form of consideration.
• D) the beneficiary of a trust must be notified of the trust's creation.

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Definitions:

Compounded Monthly

Refers to interest on a loan or investment calculated monthly, adding to the principal sum so that each successive calculation includes the previous month's interest.

Semiannually Compounded

Interest on an investment or loan calculated twice a year.

Compounded Annually

Interest calculation method where interest is calculated on the initial principal as well as the interest accumulated over previous periods, applied once per year.

Annual Sales

The total revenue generated from sales activities over the course of one year.