Which of the following statements concerning a simple trust is correct?
A – Income and principal may be distributed to a qualified charity.
B – It receives a special tax deduction for income distributed to its beneficiaries.
C – Income is accumulated at the discretion of the trustee.
D – It limits the number of permissible beneficiaries.
Answer:B
Which of the following statements concerning a simple trust is correct?
A – Income and principal may be distributed to a qualified charity. B – It receives a special tax deduction for income distributed to its beneficiaries. C – Income is accumulated at the discretion of the trustee. D – It limits the number of permissible beneficiaries.