American College Exam HS330 Topic 1 Question 91 Discussion

Actual exam question for American College's HS330 exam

Question #: 91
Topic #: 1

In which of the following situations will the grantor be taxed on income from trust property.

l. The grantor of a trust gives one of the trust beneficiaries the right to add or delete beneficiaries.

II .An adverse party to the grantor holds the power to determine the timing of trust distributions to the beneficiaries.

Al only

BII only

CBoth l and ll

DNeither I nor II

Show Suggested Answer

Suggested Answer: D

by Yvonne at Jul 02, 2024, 04:47 AM

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Goldie

8 days ago

I'm not sure about this one. The question seems a bit tricky, but I'm going to go with C. Both I and II seem to be situations where the grantor would be taxed.

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Isabella

10 days ago

Hmm, I think the answer is B. If an adverse party has the power to determine the timing of trust distributions, then the grantor would be taxed on the income from the trust property.

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