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American College Exam HS330 Topic 1 Question 74 Discussion

Actual exam question for American College's HS330 exam
Question #: 74
Topic #: 1
[All HS330 Questions]

Which of the following statements concerning a simple trust is (are) correct?

l. All income must be distributed as earned to the person or persons who are beneficiaries of the trust.

II. Principal and income may be distributed to a qualified charity.

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Suggested Answer: B

by Salome at Sep 02, 2023, 11:16 PM

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Louann
1 months ago
A simple trust, huh? Sounds like the kind of trust a trust-fund baby would set up. 'Keep it simple, stupid' must be their motto.
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Rex
5 days ago
And principal and income from a simple trust can also be distributed to a qualified charity.
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Mireya
6 days ago
That's correct! Income from a simple trust cannot be accumulated or held back.
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Wilford
1 months ago
A simple trust is a type of trust that must distribute all income as earned to the beneficiaries.
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Diane
2 months ago
This is a simple trust, not a complicated one, right? I'm going to go with C. Gotta keep it simple, you know?
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Eloisa
8 days ago
Definitely, simplicity is key. C) Both l and II covers all the bases.
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Willie
9 days ago
I think so too. It's important to understand the basics. C) Both l and II is the way to go.
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Amos
1 months ago
I agree, keeping it simple is always best. C) Both l and II seems like the right choice.
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Helga
2 months ago
Wait, what? All income must be distributed to the beneficiaries? That doesn't sound right. I'm going to have to go with D. Neither I nor II is correct.
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Ulysses
2 months ago
Hmm, this seems straightforward. I'll go with B. Option II only, since charities are usually the ones that get the goodies from these kinds of trusts.
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Lenita
2 months ago
I'm not sure about this one. I think I need to review the material again.
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Tresa
2 months ago
I agree with Daniel. Simple trusts can distribute both income and principal to qualified charities.
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Veronika
2 months ago
I think the correct answer is C. Both statements are correct for a simple trust. The trust can distribute income to the beneficiaries, and it can also distribute principal and income to a qualified charity.
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Sanda
1 months ago
Exactly. It's important to understand the rules and options for managing a simple trust.
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Jutta
1 months ago
So, the trust has flexibility in how it distributes funds to beneficiaries and charities.
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Vernice
1 months ago
Yes, that's right. A simple trust can distribute income to beneficiaries and also to a qualified charity.
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Arlie
2 months ago
I think the correct answer is C. Both statements are correct for a simple trust.
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Daniel
2 months ago
I think the correct answer is C) Both l and II.
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