Which of the following accurately describes a charitable trust? A Charitable organization: 1 Funds the trust...

Which of the following accurately describes a charitable trust? A Charitable organization:

1 Funds the trust with property that produces tax-exempt income for the charity.

2 Funds the trust and is entitled to tax-exempt income at a later date, specified in the trust document.

3 Is entitled to either an income interest or remainder interest, or both, from the trust.

4 uses this kind of trust to compensate employees of the charity

Expert Solution

Solution:

A charitable trust is basically a set of assets and these assets can produce interests. These assets are managed by the charitable organization and they are entitled to get the income generated from the assets.

Hence the correct option is C) Is entitled to either an income interest or remainder interest, or both, from the trust.

jeff jeffy answered 2 years ago

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