Regarding a trust, which of the following is a false statement?
A) Interest may be generated by a trust.
B) Income may be paid to a person identified as an income beneficiary.
C) A person entitled to income must be the person entitled to the trust corpus.
D) A trust may be created to protect a pet.
E) A trust may be created for tax reasons.

Question

Quizplus · Accepted Answer

A trust can have different beneficiaries for the income and the corpus (principal). The person entitled to the income (income beneficiary) does not have to be the same person entitled to the trust corpus. This allows for flexibility in estate planning and trust management.

Regarding a Trust, Which of the Following Is a False