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Your Client Is Considering Becoming a Trust Grantor, but Is

Question 12

Multiple Choice

Your client is considering becoming a trust grantor, but is concerned about tax obligations that they may face; what should the client be informed of?


A) A grantor trust is treated separately for tax purposes.
B) The beneficiary pays all tax issues.
C) A trust grantor may be taxed on its income as the owner of the trust.
D) There are no tax issues to be concerned with.

Correct Answer:

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