A Trust That Provides Continuity and Management of Asset Management

question 29

Multiple Choice

A trust that provides continuity and management of asset management and allows assets to bypass probate,but which provides no income or estate tax advantages is a(n) ____ trust.

• A) revocable living
• B) irrevocable living
• C) testamentary
• D) charitable lead
• E) credit shelter

---

Definitions:

Gross Earnings

The total amount of money earned by an individual or corporation before any deductions are taken out.

Medicare Withholding

The portion of a U.S. employee's paycheck that is automatically deducted and contributed to the Medicare program.

Social Security Withholding

The process by which employers deduct a portion of an employee's salary to contribute to the Social Security program.

Federal Income Tax Withholding

The amount of federal income tax withheld from an employee's paycheck, based on their earnings and tax filing status.