Fab Is the Owner and Manager of a Business Trust

question 38

Multiple Choice

Fab is the owner and manager of a business trust. Gilly is the benefici?ary. Responsibility for the debts and obligations of the trust rest with

• A) Fab and Gilly.
• B) Fab only.
• C) Gilly only.
• D) neither Fab nor Gilly.

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Definitions:

Express Trusts

A type of trust explicitly created by a settlor, typically in writing, specifying the trust's terms, beneficiaries, and the trustee's duties.

Trust Instruments

Legal documents establishing a trust, specifying its terms, and the responsibilities of the trustees.

Personal Representative

The person designated by a testator to collect the testator’s property after he or she dies, pay the debts and taxes, and make sure the remainder of the estate gets distributed.

Beneficiaries

Individuals or entities designated to receive benefits or assets from a will, trust, insurance policy, or other legal instrument.