Trusts

What is the definition of a trust?

• A partnership formed to handle family assets

• An equitable obligation for the benefit of certain persons

• A legal entity created by a trust deed

• A company established for charitable purposes

Who is the settlor in a trust?

• The trustee responsible for trust administration

• The person who creates the trust

• The legal owner of the trust's assets

• The beneficiary entitled to the trust's income

What is the main purpose of creating a trust?

• To maximize tax benefits for the settlor

• To control and protect family assets

• To generate income for the trustee

• To provide employment opportunities for beneficiaries

What type of trust gives the trustee the power to decide on the amount of trust income to be distributed to the beneficiaries?

• Bare trust

• Mixed trust

• Discretionary trust

• Non-discretionary trust

When is a testamentary trust created?

• When the trust deed is signed

• During the settlor's lifetime

• After the death of the settlor

• When the trust assets are distributed

Who is the chargeable person for a trust under the Income Tax Act?

• Beneficiary

• Trustee

• Settlor

• Legal advisor

How is the residence status of a trust determined?

• If any trustee member is tax resident in a basis year

• By the nationality of the trustee

• Based on the location of the trust assets

• By the citizenship of the beneficiaries

What is the basis period for a trust body?

• Academic year

• Fiscal year

• Financial year

• Calendar year

How is the tax rate applied to the income of a trust body?

• 17%

• 24%

• 10%

• 30%

What type of expenses are deductible for a trust body?

• Distributions to beneficiaries and accounting fees

• Trust assets depreciation and repairs

• Revenue expenses and approved donations

• Trustee's remuneration and annuity payments