A(n) ________ Is the Most Basic Type of Trust, Which

question 97

Multiple Choice

A(n) ________ is the most basic type of trust, which allows a business owner to put up to $1.3 million into trust, naming his spouse as the beneficiary upon his death. The spouse receives the income from the trust throughout her life, but the principal in the trust goes to the couple's heirs, free of estate taxes, upon the spouse's death.

• A) grantor-retained annuity trust
• B) family limited partnership
• C) bypass trust
• D) estate freeze

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