Co-ownership, estate and trust

Chapter Exercises - Co-ownership, Estates and Trust 23. Estates and trust are a. Treated as separate taxable entities. b. The tabular rates of tax prescribed under Section 24A for individuals shall be used in computing the income tax of trusts of estates. Personal exemption is no longer allowed to be deducted C. beginning January 1, 2018 d. All of the above 24. Which of the following statements regarding trust agreement(s) is correct? 28. I. A trust is a right of property, real or personal, held by one party for the benefit of another. II. The creation of trusts may either be express or implied. III. Trusts are treated as separate taxable entities. a. I, II and III I and III only b. I and II only d. I only 25. The following are the classifications of Trusts, except a. Ordinary trust b. Revocable trust Irrevocable trust Employer's trust 29. 26. The following statement(s) refer to a Testamentary Trust, except: I. It is created under a Last Will and Testament. II. III. It exists in the Will only until the death of the Testator. This type of trust is amendable and revocable at any time during the Testator's lifetime, but becomes irrevocable upon the Testator's death. IV. A Testamentary Trust is considered its own legal entity, so it is taxed separately from the individual Beneficiaries even before the death of the testator. a. I only b. II only C.IV only 30. S d. III and IV only 27. Which of the following statement(s) is/are correct description(s) of an "Ordinary Trust"? I. A trust where the income is accumulated or held for future II. distribution under the terms of a testamentary trust. A trust where the income is to be distributed currently by the fiduciary to the beneficiaries