American College Exam HS330 Topic 1 Question 91 Discussion

Actual exam question for American College's HS330 exam

Question #: 91
Topic #: 1

In which of the following situations will the grantor be taxed on income from trust property.

l. The grantor of a trust gives one of the trust beneficiaries the right to add or delete beneficiaries.

II .An adverse party to the grantor holds the power to determine the timing of trust distributions to the beneficiaries.

Al only

BII only

CBoth l and ll

DNeither I nor II

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Suggested Answer: D

by Yvonne at Jul 02, 2024, 04:47 AM

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2 days ago

Actually, I think the grantor will be taxed in both situations l and II because they have control over the trust property.

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3 days ago

I disagree, I believe the grantor will be taxed in situation II only.

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4 days ago

I think the grantor will be taxed in situation l only.

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