Mary died this year. Her will creates a trust for the benefit of her children. A portion of the estate's assets are placed in this trust. The estate has income from assets it will transfer to other beneficiaries at a later date. Mary's brother Joe is the trustee of the trust and executor of the estate. Which of the following statements is true?
A) Joe must choose December 31 as the tax year-end for both the estate and trust.
B) Joe is free to choose any tax year-end for both the trust and estate.
C) Joe must choose December 31 as the estate tax year-end but is free to choose any tax year-end for the trust.
D) Joe must choose December 31 as the trust tax year-end but is free to choose any tax year-end for the estate.
Correct Answer:
Verified
Q95: Karly created a $300,000 trust that provided
Q96: Michael died in 2013 with a taxable
Q97: Identify which of the following statements is
Q98: Describe the double taxation of income in
Q99: All of the following are advantages of
Q101: Administration expenses incurred by an estate
A)are deductions
Q102: Identify which of the following statements is
Q103: What is the benefit of the 65-day
Q104: Trusts are required to make estimated tax
Q105: For the first five months of its
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents