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If a State Has Adopted the Revised Uniform Principal and Income

Question 2

Multiple Choice

If a state has adopted the Revised Uniform Principal and Income Act, which of the following statements is correct?


A) The state law definition of trust income will preempt any other definitions.
B) The definition of trust income in the trust document will preempt all other definitions.
C) Under state law, tax-exempt interest will not be allocated to income.
D) The definition of principal in the trust document must classify capital gains as principal.

Correct Answer:

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