Which of the Following Statements Is TRUE Regarding Trusts

question 7

Multiple Choice

Which of the following statements is TRUE regarding trusts?

• A)Losses that exceed income in a trust are allocated to the beneficiary at the end of the year.
• B)From a tax perspective, there is little benefit to structuring a business as a royalty trust.
• C)Income that is payable to a beneficiary cannot be deducted from the trust's income.
• D)The residence of a trust is determined by the residence of the trustees.

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Definitions:

Mesosystem

The quality of relationships among the people in a child’s microsystem.

Exosystem

A concept in ecological systems theory referring to the external social settings that indirectly influence an individual's development.

Chronosystem

Part of the ecological systems theory, it encompasses the dimension of time as it relates to an individual's environments and life events.

Define Family

A conceptualization of family, which can include a range of relationships and structures, from biological connections to chosen affiliations of support and care.