Which of the following statements is TRUE regarding trusts?
A) The residence of a trust is determined by the residence of the trustees.
B) Losses that exceed income in a trust are allocated to the beneficiary for tax purposes.
C) Mutual funds are one example of commercial trusts.
D) Income that is payable to a beneficiary cannot be subtracted from the trust's income.

Question

Quizplus · Accepted Answer

Mutual funds can be structured as commercial trusts, where the trust holds the assets and investors hold units in the trust.

Which of the Following Statements Is TRUE Regarding Trusts