Reyes Contributed Assets to a Trust, Designating Daughter Maria as the Income

question 74

True/False

Reyes contributed assets to a trust, designating daughter Maria as the income beneficiary, and grandson Julio as the remainder beneficiary. This year, fiduciary accounting income was $50,000. The trustee accumulated $5,000 of this amount and added it to trust corpus. Reyes pays Federal income tax on $5,000 for the year.

---

Definitions:

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that categorizes human needs into a five-tier model, ranging from basic (physiological) needs to higher needs (self-actualization), illustrating motivational factors driving human behavior.

Mayhem Campaign

A popular advertising campaign created by Allstate Insurance to personify the risks and unpredictability of everyday life, emphasizing the need for insurance.

Safety

Refers to the condition of being protected from harm, risk, danger, or causing injury, ensuring the wellbeing of individuals or property.

Self-respect

The regard for one's own well-being and dignity.