Solution-Children the beneficiaries of the trust

Children the beneficiaries of the trust

Assignment Help Finance Basics

Reference no: EM131318628

Ginger created an ILIT and transferred a life insurance policy and rental property to the trust. She named her husband Alfred and her children the beneficiaries of the trust. The income from the property is sufficient to pay policy premiums every year. How is the trust income taxed?

Select one:

a. Trust income is taxed to Ginger because grantor trust rules apply.

b. Trust income is not taxed to Ginger because the trust is irrevocable and Ginger will not receive any income from the trust.

c. Trust income is taxed to the trust beneficiaries.

d. Trust income is taxed to the trust as distributable net income.

Reference no: EM131318628

Questions Cloud

Daryl estate and a marital deduction : In 2009, Daryl bought a life insurance policy on his life with a death benefit of $200,000. He named his wife Melanie the beneficiary of this policy. In 2012, Daryl created an ILIT with Melanie as beneficiary, and transferred all incidents of owne..

Distinguish between the front office and the back office : Distinguish between the front office and the back office of a derivatives dealer.- Explain why it is important to keep the front and back offices separate ?

What prevents or substantiates their correlation : Symbolic interactionism is actually a theory posed in sociological psychology. Do you believe this theory can be aligned with the framework of constructivism, which originates from learning psychology? Why, or why not?

Analyzes and summarizes the most important points in paper : An effective executive summary analyzes and summarizes the most important points in the paper or report, and will often make a recommendation based on the analysis. Executive summaries are 'stand alone' documents that are almost always read indepe..

Children the beneficiaries of the trust : Ginger created an ILIT and transferred a life insurance policy and rental property to the trust. She named her husband Alfred and her children the beneficiaries of the trust. The income from the property is sufficient to pay policy premiums every ..

What you see as single most critical strategic issue facing : MNGT 393: A brief discussion of what you see as the SINGLE MOST CRITICAL STRATEGIC ISSUE facing the company based on the above analysis. (1/2 page)

Determines whether a hedge is sufficiently effective : Explain how an organization determines whether a hedge is sufficiently effective to justify hedge accounting?- Describe the primary differences between accounting for fair value hedges and accounting for cash flow hedges?

Demonstrate the impact on the financial statements : BLB00034 Accounting Theory and Practice - Demonstrate the impact on the financial statements and the implication for different users of accounts of alternative ways of treating controversial accounting items and critically evaluate the usefulness ..

Noncumulative right to withdraw the greater : Florence transferred $300,000 to an irrevocable trust for her two children. She granted them a noncumulative right to withdraw the greater of $5,000 or 5% of trust assets each year. Her children did not make any withdrawal this year. What is the a..

User Account

All Pages

Children the beneficiaries of the trust

Reference no: EM131318628

Reference no: EM131318628

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT