AAFM CTEP Exam - Topic 2 Question 73 Discussion

Actual exam question for AAFM's CTEP exam

Question #: 73
Topic #: 2

[All CTEP Questions]

Which of the following statement(s) about Discretionary Trust is/are correct?

AAll of the above

BAll except (i)

CAll except (iii)

DOnly (ii)

Show Suggested Answer

Suggested Answer: C

by Launa at Jan 05, 2026, 05:16 AM

Limited Time Offer

25%

Off

Get Premium CTEP Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Carin

18 days ago

Haha, this question is like a trust exercise - you gotta be careful which option you choose!

upvoted 0 times

...

Pamella

23 days ago

I'm going with C. The wording on (iii) seems a bit off to me.

upvoted 0 times

...

Annette

29 days ago

I think D is the correct answer, but I'm curious to see what the others think.

upvoted 0 times

...

Nan

1 month ago

Hmm, this one's tricky. I'm leaning towards B, but I'm not 100% sure.

upvoted 0 times

...

Leatha

1 month ago

I remember that discretionary trusts can be quite flexible, but I’m not confident about which statements are definitely correct. I might lean towards option A, but I need to double-check.

upvoted 0 times

...

Alberta

1 month ago

I’m a bit confused about statement (iii). I feel like it might be true, but I can't recall the details clearly.

upvoted 0 times

...

Sarah

2 months ago

I practiced a similar question last week, and I believe option B might be correct since it excludes the first statement, which seemed a bit off.

upvoted 0 times

...

Ryan

2 months ago

I think I remember that discretionary trusts allow the trustee to decide how to distribute income, but I'm not sure about the specifics of each statement.

upvoted 0 times

...

Micheline

2 months ago

Alright, time to put my trust knowledge to the test. I'll need to really focus and not rush through this question.

upvoted 0 times

...

Andree

2 months ago

Okay, let me break this down. I know discretionary trusts give the trustee some flexibility in how they distribute the assets. I'll need to analyze each statement to see which ones are accurate.

upvoted 0 times

...

Domitila

2 months ago

Hmm, this looks tricky. I'm not too familiar with the details of discretionary trusts. I'll have to think this through carefully.

upvoted 0 times

...

Nydia

3 months ago

I think I can handle this one. The key is to carefully read through each statement and determine which ones are correct.

upvoted 0 times

...