Question

A trust that provides continuity and management of assets and allows assets to bypass probate, but which provides no income or estate tax advantages is a(n) _____ trust.

A) Revocable living
B) Irrevocable living
C) Testamentary
D) Charitable lead
E) Credit shelter

Answer 1

A revocable living trust is a trust that provides continuity and management of assets, but does not offer any income or estate tax advantages.

Step-by-step explanation:

A trust that provides continuity and management of assets and allows assets to bypass probate, but which provides no income or estate tax advantages is a(n) revocable living trust.

A revocable living trust is a type of trust that can be changed or revoked by the trust creator during their lifetime. Although it provides continuity and management of assets, it does not offer any income or estate tax advantages.

For example, let's say John creates a revocable living trust and transfers his assets into the trust. Upon John's death, the assets in the trust can be distributed to his beneficiaries without going through probate. However, the trust does not provide any tax benefits or advantages.