To Reduce Trustee Commissions,the Emily Trust Is Operated as Though

question 6

Multiple Choice

To reduce trustee commissions,the Emily Trust is operated as though it were two trusts (i.e. ,with 70-year-old Grandma and 7-year old Skippy each holding equal shares) .This year the trust generated distributable net income (DNI) of $80,000.The trustee distributed $90,000 to Grandma this year: $40,000 as her one-half share of the entity's income,and $50,000 as a distribution of principal.How much of the year's distributable net income is assigned to Grandma?

• A)$90,000.
• B)$80,000.
• C)$50,000.
• D)$40,000.

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