With Respect to a Trust, the Terms Creator, Donor, and Grantor

question 43

True/False

With respect to a trust, the terms creator, donor, and grantor are synonyms.

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Definitions:

Nominal Interest Rate

The interest rate before adjustments for inflation or other factors that affect the real value of money.

Annual Rate

The interest rate for a whole year, as opposed to a shorter period, such as monthly or quarterly.

Compounded Annually

The calculation of interest on the original principal and the accumulated interest of prior periods, applied once per year.

Quarterly Payments

Payments made four times a year at three-month intervals, often used in loan repayments.