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Which of the following is a distinguishing feature of estate administration rather than personal trust administrations?

a. Preservation and protection of assets are the primary investment objectives for estate administration, in contrast to personal trust administration where investing the asset for future income in addition to asset preservation and protection are primary goals.
b. Discretionary powers in estates are generally more limited than in trust accounts.
c. For estates, a full accounting to the court is required.
d. All of the above.

1 Answer

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Final answer:

The key distinguishing feature of estate administration compared to personal trust administration is the requirement of a full accounting to the court, making option 'c' the correct answer.

Step-by-step explanation:

The query revolves around distinguishing features of estate administration compared to personal trust administration. Each option presents an aspect to consider, but one aligns perfectly as a definitive characteristic. To elaborate:

  • Preservation and protection of assets are indeed central to estate administration but improper as a distinguishing feature since personal trust administrations also hold these objectives, though alongside income generation.
  • Discretionary powers can often be more constricted in estates than in trusts, highlighting differences in the control wielded by executors versus trustees.
  • Unlike most personal trust administrations, estate administration mandates a full accounting to the court, which signifies a formal process with legal oversight, unlike the relative privacy afforded to trusts.

Considering the provided information, the most fitting and distinguishing feature of an estate administration is the requirement of a full accounting to the court. Thus, the mentioned correct option in the final answer is "c. For estates, a full accounting to the court is required" which distinctively defines estate administration in contrast to personal trust administration, where no such court accounting is uniformly necessary.

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