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.

Al only

BII only

CBoth l and Il

DNeither l nor ll

Show Suggested Answer

Suggested Answer: B

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

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Lenita

10 days ago

I'm not sure about this one. I think I need to review the material again.

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Tresa

12 days ago

I agree with Daniel. Simple trusts can distribute both income and principal to qualified charities.

upvoted 0 times

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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.

upvoted 0 times

Arlie

3 days ago

I think the correct answer is C. Both statements are correct for a simple trust.

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Daniel

20 days ago

I think the correct answer is C) Both l and II.

upvoted 0 times

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American College Exam HS330 Topic 1 Question 74 Discussion

Contribute your Thoughts:

Lenita

Tresa

Veronika

Arlie

Daniel