Which of the Following Is a Typical Duty of a Trustee

question 6

Multiple Choice

Which of the following is a typical duty of a trustee?

• A) File the entity's returns for the local property tax on real estate.
• B) File the entity's state and Federal income tax returns.
• C) Invest the assets that comprise the corpus of the entity.
• D) Distribute entity accounting income to the beneficiaries in accordance with the provisions of the trust instrument.
• E) All of the above.

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Definitions:

Maturity Value

The sum owed to an investor at the conclusion of a fixed-duration investment, encompassing both the original amount invested and the accrued interest.

Promissory Note

A financial instrument constituting a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Simple Interest

Interest calculated solely on the principal amount of a loan or deposit, without compounding.

Consecutive GICs

A sequence of Guaranteed Investment Certificates held one after another, often to create a ladder strategy for managing interest rate risk.