Income not allocated to beneficiaries is considered income to the trust. Later, when the trust distributes this income to its beneficiaries, the income will be subject to tax again in the beneficiary's hands. True False QUESTION 22 Most personal trusts are subject to a special rule, whereby certain capital assets held by the trust are deemed to be disposed of at fair market value every 21 years. True False QUESTION 23 There are three important participants in the creation of a trust. Which of the following correctly describes these participants and their role? A trustee transfers property to a beneficiary to hold and administer for one or more trustees. A settlor transfers property to a trustee to hold and administer for one or more beneficiaries. A beneficiary transfers property to a settlor for the benefit of one or more trustees. A settlor transfers property to a partner to hold for the benefit of one or more shareholders. A trustee transfers property to a partner to hold for the benefit of one or more shareholders