Which of the following statements exemplifies the ability of a settlor to use a trust to in relation to levels of taxation?

Question

Quizplus · Accepted Answer

While it is possible to use a trust to reduce tax payments, it is becoming increasingly difficult to do so due to stricter regulations and anti-avoidance measures. It is not possible to use a trust to completely avoid tax payments, and the specific taxes that can be minimised will depend on the jurisdiction and the specific terms of the trust. Therefore, option A is incorrect. Option C is also incorrect as trusts can be used to minimise various types of taxes, not just inheritance tax. Option D is incorrect as trusts can also be used to minimise capital gains tax in some cases.

Which of the Following Statements Exemplifies the Ability of a Settlor