The Code Defines a "Simple Trust" as Which of the Following

question 100

Multiple Choice

The Code defines a "simple trust" as which of the following?

• A) One which is allowed to file Form 1041-EZ.
• B) One which has only one income beneficiary.
• C) One whose grantor was an individual who still is alive.
• D) One which must distribute its accounting income every year.

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Definitions:

Assignee's Assent

The agreement or acceptance by the assignee to accept the terms and conditions of an assignment.

Valid

Having legal force, binding, or enforceable; conforming to the law or to established legal forms and requirements.

Donee Beneficiaries

Individuals or entities intended by the parties in a contract to receive benefits from the agreement's performance without being directly involved in the contract.

Incidental Beneficiaries

Individuals or entities who indirectly benefit from a contract despite not being explicitly mentioned as parties to the contract.