Income Is Taxed to the Creator of A(n)____________________ Trust

question 41

Short Answer

Income is taxed to the creator of a(n)____________________ trust.

---

Definitions:

Mental Capacity to Contract

The ability of an individual to fully understand the terms and conditions of a contract to which they are a party, including the implications of entering the contract.

Nature and Effect

A term used to assess the inherent characteristics of something and its resulting consequences or impacts.

Good Faith Purchaser

A person who buys property without knowledge of any existing claims or defects in title, thus protected under the law.

Valuable Consideration

Any benefit, right, or interest that has tangible or intangible worth, which is provided by one party to another as part of a contract.