If a State Has Adopted the Revised Uniform Principal and Income

question 76

Multiple Choice

If a state has adopted the Revised Uniform Principal and Income Act, which of the following statements is correct?

• A)The state law definition of trust income will preempt any other definitions.
• B)The definition of trust income in the trust document will preempt all other definitions.
• C)Under state law, tax-exempt interest will not be allocated to income.
• D)The definition of principal in the trust document must classify capital gains as principal.

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Definitions:

Truth

The quality or state of being in accord with fact or reality, often sought after in various contexts such as moral, philosophical, or scientific inquiries.

Blinders

Devices used on the sides of horse's eyes to prevent them from seeing to the rear and keep them focused forward.

Stereotypical Beliefs

Widely held but fixed and oversimplified ideas or perceptions of particular types of people or things.

Religious Beliefs

The faith or convictions regarding the existence, nature, and worship of a deity or deities, and divine involvement in the universe and human life.