Which of the Following Restrictions Applies Concerning Distributions to Trust

question 40

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 a substantial economic effect.

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Definitions:

ITQ

Individual Transferable Quotas (ITQs) are a tool in fishery management that allocate a specific portion of the total allowable catch to individual fishermen or companies.

Fisheries Management

The regulatory practices aimed at preserving fish populations and aquatic ecosystems while ensuring sustainable usage by humans.

Transferable Quota

A system where certain rights (often to produce a certain amount of goods or emit a certain amount of pollutants) can be exchanged between entities.

Fisheries Management

The regulation and supervision of fishing activities to ensure sustainable use of aquatic resources.