Identify which of the following statements is false.
A)State trust law preempts the trust document when defining income.
B)The Uniform Act on principal and income requires depreciation to be charged against income.
C)A statement in the trust instrument concerning the allocation of depreciation to principal or income overrides a provision of state law.
D)The Uniform Act allocates royalties to both principal and income.

Question

Quizplus · Accepted Answer

State trust law does not preempt the trust document when defining income; the trust document typically governs unless it is silent or ambiguous, in which case state law may apply.

Identify Which of the Following Statements Is False