Question
Henrietta wants to create a domestic trust that will protect her assets from her creditors. Which one of the following statements correctly identifies potential trust
Henrietta wants to create a domestic trust that will protect her assets from her creditors. Which one of the following statements correctly identifies potential trust terms that will accomplish Henrietta's goal?
A) Henrietta may create a revocable trust, fund it with her assets, retain a right to trust income only through discretionary distributions that she may make to herself as trustee, and leave the trust income and corpus to her spouse.
B) Henrietta may create a revocable or irrevocable trust, fund it with her assets, retain a right to trust income, and leave the trust corpus to third-party beneficiaries.
C) Henrietta may create an irrevocable trust, fund it with her assets, name a third party as the trustee and income beneficiary, name a third party as the trust corpus beneficiary, and name herself as a contingent beneficiary in the event the third party predeceases.
D) Henrietta may create an irrevocable trust, fund it with her assets, name a third party as the trustee, and name a third party as the trust income and corpus beneficiaries.
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