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

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Definitions:

Zero-Coupon Bonds

Bonds that do not pay periodic interest payments but are issued at a substantial discount to their face value, maturing at par.

Coupon Rate

The annual interest rate paid by a bond as a percentage of its face value, typically expressed in annual terms.

Par Value

The face value of a bond or the stock value stated in the corporate charter, which can differ significantly from its market value.

On The Run

Recently issued bond, selling at or near par value.