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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Definitions:

Denominator Degrees

This key term does not appear to be standard; however, it may refer to the denominator in statistical formulas where degrees of freedom are considered.

Estimated Form

In statistics, it refers to the version of an equation that estimates the parameters of a model based on sample data.

Unit

A standard measurement or quantity used as a basis for counting, comparison, or calculation.

Critical Value

A threshold point on the test distribution that is compared against the test statistic to determine whether to reject the null hypothesis.