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Which is these is true about trusts?

OA. They have less tax liability.
OB. They have multiple beneficiaries.
C. They require power of attorney.
OD. They have more tax liability.

1 Answer

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Answer: The answer is They have more tax liability.

Explanation:Trust is a fiduciary relationship.In this, a first party gives the right to assets or the right to hold the title to a second party for the benefit of a third party.The first party is called the Grantor.The second party is called as the Trustee.The third party is called as the Beneficiary.As the trust is a seperate legal and taxable entity, the tax payment of the trusts depend upon whether it is a simple trust,complex trust or a grantor trust.The tax brackets of trusts are more compressed.So, the trusts pay more taxes than individual taxpayers.

User Denis Biondic
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