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:

Adaptive Flexibility

The ability of an individual or organization to adjust and adapt to new conditions or changes in the environment effectively.

Fitness

The condition of being physically fit and healthy, often as a result of exercise and proper nutrition.

Reproduce

The biological process through which living entities create offspring, enabling the continuation of species.

Genetically Predisposed

means having an increased likelihood of developing a particular condition based on one's genetic makeup.