Identify Which of the Following Statements Is True

question 69

Multiple Choice

Identify which of the following statements is true.

• A)Under the grantor trust rules, a grantor may be taxed on all or a portion of the trust's income even though the income is distributed to the named beneficiary or someone else.
• B)An irrevocable trust cannot be a grantor trust.
• C)Large amounts of income can be shifted to children under the age of 18 through the use of trusts that make distributions, and the income will be taxed at the lower rates of the children.
• D)All of the above are false.

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Definitions:

Stamp Act Congress

A meeting of delegates from several American colonies in 1765, protesting against British taxation without representation, specifically the Stamp Act.

Committees of Correspondence

Networks of communication established among the American colonies to disseminate colonial opposition to British policies through the exchange of letters and pamphlets.

Writs of Assistance

Legal documents that served as general search warrants enabling colonial British officials to search any premises for smuggled goods without specifying the place or items being sought, leading to tensions that contributed to the American Revolution.

Search Warrants

Legal documents issued by a court or judicial officer that authorize law enforcement officials to conduct searches of premises for evidence.