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Tax Professionals Use the Terms Simple Trust and Complex Trust

question 130

Essay

Tax professionals use the terms simple trust and complex trust when dealing with fiduciary arrangements. How does one know whether a trust is simple or complex? When is this determination made?


Definitions:

Series Circuit

An electrical circuit that has only one path for current flow.

Amps Flow

The rate of electrical current measured in amperes (A) flowing through a conductor or circuit.

Cathode

The electrode through which electrons leave an electrical device or where reduction reactions occur in an electrolytic cell.

Current Flow

The movement of electric charge through a conductor, typically measured in amperes.

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