All of the Following Are Advantages of a Sprinkling Trust

question 47

Multiple Choice

All of the following are advantages of a sprinkling trust, except

• A)the trustee can choose the amount to distribute among multiple beneficiaries.
• B)the trustee can determine the amount to retain in the trust.
• C)the trustee can determine the amount to distribute to the sole trust beneficiary.
• D)the trustee can consider the tax rates of the beneficiaries and trust.

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Definitions:

Joint And Several Liability

A legal term indicating that each party involved is individually responsible for the entire debt or obligation, as well as collectively with the other parties.

Agent's Torts

Refers to wrongs committed by an agent acting on behalf of a principal that can lead to liability for the agent and potentially the principal.

Principal

The main party to a transaction or contract, often distinguished from an agent who acts on behalf of a principal.

Liability

An obligation, either legal or financial, that an individual or entity is required to fulfill towards another party.