A Trust Is a Contract Between a Grantor and a Trustee

question 7

True/False

A trust is a contract between a grantor and a trustee which shields all assets from any federal tax and permits the small business owner to pass on his/her business without tax loss.

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Definitions:

RUPA

The Revised Uniform Partnership Act, which provides a legal framework for the operation of partnerships in the United States.

Intent

The state of mind with which an act is done, characterized by a decision to bring about a specific result, often a crucial aspect in both criminal and contract law.

Limited Liability

A legal status where a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership.

Income Taxes

Taxes imposed by the government on the income earned by individuals and businesses over a fiscal period.