Estate and Trust Tax Part 2 Flashcards
1
Q
What is a simple trust?
A
One of the requirements of a simple trust is that the trust not distribute principal (corpus).
2
Q
What is a grantor’s trust?
A
A grantor trust is one in which the grantor retains beneficial enjoyment or substantial control over the trust property or income.
3
Q
What is revocable trust?
A
A revocable trust is one in which the grantor retains the power to revest all or part of the trust property.
4
Q
What is an express trust?
A
An express trust is created when funds or property are distributed to a trustee. The trustee holds the funds or property for the recipient. The express trust must generally fulfill the requirements within the legal trust.
