BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -A trust created for the fulfillment of an altruistic purpose is known as a spendthrift trust. False. A resulting trust is formed when the entity intended to receive the benefit of an express trust cannot do so. True. The creator of the trust is known as the trustee.
Detailed explanation-2: -A living trust is a legal arrangement established by an individual (the grantor) during their lifetime to protect their assets and direct their distribution after the grantor’s death.
Detailed explanation-3: -A testamentary trust is as a trust established by a will, the benefits being: maximum flexibility; better asset protection from third parties; and. tax planning advantages.
Detailed explanation-4: -Like other trusts created in the Commonwealth of Virginia, a spendthrift trust is an asset pool that the benefactor/settlor establishes for a beneficiary. A responsible third person-the fiduciary-manages and dispenses the funds in accordance with the requirements of the maker of the trust.