Question 31 From an income tax perspective, a defective trust is also known as: A -...
Question 31
From an income tax perspective, a defective trust is also known as:
A - A mistake
B - A simple trust
C - A complex trust
D - A grantor trust
Question 32
Angela Snider, age 32, has $19,000 in her qualified retirement plan. The maximum amount that Angela can borrow against her account is
A - zero – qualified retirement plans do not permit loans
B - $8,000
C - $ 9,500
D - $10,000
E - $50,000
Question 33
Jill is considering naming a bypass trust as beneficiary of her IRA after her death. Jill’s spouse is a discretionary income beneficiary of the bypass trust. Which of the following is a reason for not designating the bypass trust as beneficiary of her IRA?
A - a bypass trust is the best way to stretch income tax deferral over the life of Jill’s spouse and his designated beneficiary
B - IRA assets will appreciate as income taxable minimum distributions are made
C - Jill’s spouse can treat the IRA as his own
D - part of the unified credit will be wasted on income tax
Question 34
Decedents will was drafted by Attorney A. The will names Executor and suggests Executor use Attorney A or his law partner Attorney B as attorney for the estate. Executor should:
A - Use Attorney A as attorney for the estate
B - Use Attorney B as attorney for the estate
C - Use any attorney other than Attorney A or Attorney B as attorney for the estate
D - Select the attorney to use for the estate
Question 35
Jane Tally has a thrift/savings plan with her employer. She knows
A - her contribution to the plan is voluntary and made with after-tax dollars
B - 100% of her contribution to her account is vested immediately
C - her employer’s contributions to her account must comply with Internal Revenue Code requirements for qualified plans
D - all of the above
E - only a and b
Homework Answers
31)
Defective trusts are also called Grantor Trust. These trusts are created by tax payers as tax shelter of real estate tax purpose but not for income tax purpose. These are used to reduce income tax expense.
Hence, correct option is D.
Add Answer to:
Question 31
From an income tax perspective, a defective trust is also known
as:
A -...
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