Miriam Established a Trust by Placing Substantial Funds in a Trust

question 33

Multiple Choice

Miriam established a trust by placing substantial funds in a trust account for the benefit of her son, Robert. Miriam appointed her brother, Fred, as trustee for the trust. In the trust document, she did not expressly define Fred's powers as trustee, or his duties. Under these circumstances, Fred _____.

• A) must use a reasonable degree of skill, judgment, and care in the exercise of his duties
• B) does not owe any fiduciary duty to the beneficiary
• C) has the right to commingle his property with the property he holds in trust
• D) is obligated to turn over the money to Robert at the earliest

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Definitions:

Margin of Error

An expression of the amount of random sampling error in a survey’s results.

Test Statistic

A calculated value used in statistical testing to determine if the null hypothesis can be rejected.

Distribution

A mathematical description of observed or theoretical frequencies of occurrence of different possible outcomes in a dataset.

Sampling Distribution

The probability distribution of a given random-sample-based statistic, used to make inferences about a population.