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A man is planning to establish and fund an irrevocable trust for the benefit of his two sons, ages 19 and 22, and plans to give the trustee power to sprinkle trust income. From the standpoint or providing federal income, gift, and estate tax savings, which or the following would be a suitable trustee?
l. The grantor of the trust
II. The grantor's 22-year-old son
Suggested Answer: D
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9 comments · newest first
MA
Major
11 months ago
Both options have issues for tax savings.
RO
Rosendo
12 months ago
Wait, are we sure about the son's age being a factor?
LA
Laila
12 months ago
Definitely neither I nor II!
RU
Ruth
12 months ago
I think the 22-year-old son could work as a trustee.
GL
Glenn
1 year ago
The grantor can't be the trustee for tax benefits.
LO
Loise
1 year ago
I feel pretty confident about this one. Forecasting is the obvious choice, and I think Opportunity Stages would be the best second feature to configure. That should give the Sales Director a good overview of the sales pipeline and help with revenue predictions.
JE
Jesusita
1 year ago
This is a tricky one. There are a few different factors at play, and I'm not sure which one the question is really getting at. I'll need to re-read the options and try to figure out the underlying logic the exam is looking for. Hopefully, I can eliminate a few choices and make an educated guess.
LI
Ling
1 year ago
I'm leaning towards sustainability and business growth as the critical outcomes here. Reducing the carbon footprint could help with the company's credibility and growth potential. But I'm not 100% sure.
KE
Keva
1 year ago
Okay, I think I've got a good handle on the key problems here. The higher target and bonus could lead to increased production but also more accidents, and the workers might see the new target as unrealistic.