Which Type of Trust Requires That Income Generated from Its

question 58

Multiple Choice

Which type of trust requires that income generated from its assets be recognized, for federal income tax purposes, by the grantor during his or her lifetime, and reported in his or her individual income tax return?

• A) Inter vivos trust.
• B) Grantor trust.
• C) Revocable living trust.
• D) Family trust.
• E) Irrevocable life insurance trust.

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Definitions:

Cultural Group

A collection of individuals who share common cultural, religious, or ethnic backgrounds.

Gender Prejudice

Preconceived opinions or judgments about people based on their gender, often resulting in discrimination or bias.

Organizational Commitment

The level of loyalty, involvement, and attachment a member has towards their organization, influencing their willingness to continue employment.

Diversity

The presence of differences within a given setting, including race, ethnicity, gender, age, and other attributes.