Briefly Answer the Following Questions

question 4

Essay

Briefly answer the following questions:
With regard to non-spousal trusts:
A) What is the purpose of the 21-Year Rule?
B) What event occurs on the 21^st anniversary of a trust?
C) What types of properties are subject to the 21-Year Rule?
D) How can the consequences of the 21-Year Rule be avoided?
With regard to spousal trusts:
E) What is the exception to the 21-Year Rule for spousal trusts?

• A) What is the purpose of the 21-Year Rule?
• B) What event occurs on the 21^st anniversary of a trust?
• C) What types of properties are subject to the 21-Year Rule?
• D) How can the consequences of the 21-Year Rule be avoided?
• With regard to spousal trusts:
• E) What is the exception to the 21-Year Rule for spousal trusts?

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Definitions:

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time.

Unemployment Rate

The percentage of the labor force that is unemployed.

Money Supply

The aggregate of cash, coins, and deposits in checking and savings accounts, representing the financial assets available within an economy at a certain point in time.

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time.