Which of the Following Restrictions Applies Concerning Distributions to Trust

question 133

Multiple Choice

Which of the following restrictions applies concerning distributions to trust beneficiaries?

• A)Special allocations are not allowed under Subchapter J.
• B)Special allocations are allowed, but only in the trust's termination year.
• C)Special allocations are allowed, but only for portfolio income items.
• D)Special allocations of income types are allowed, assuming that they carry substantial economic effect.

---

Definitions:

Stepfathers

Men who marry someone with children from a previous relationship and may take on the role of a father figure to those children.

Biological Fathers

Men who have contributed genetically to the creation of a child, regardless of their relationship or involvement with the child thereafter.

Female Genital Mutilation

The practice of partially or totally removing the external genitalia of girls and young women for non-medical reasons.

Cultural Belief

The shared attitudes, values, norms, and practices that characterize a group of people or a society.