- 20 Marks
TAX – Nov 2020 – L1 – SA – Q3 – Taxation of Trusts and Estates
State the tax authorities of a trust or settlement and special provisions for unmarried children.
Question
A settlement is a means by which enjoyment of an estate or part of it is transferred to another person, either through a disposition, trust or covenant, agreement, arrangement, or transition of assets by reference to a trust for the benefits of persons specified.
The term “trust” relates to an equitable obligation, binding a person, called the trustee, to deal with a property over which he/she has custody (which is called the trust property), for the benefit of persons (beneficiaries) of which he/she may be one.
Required:
a. State the relevant tax authorities of a trust or settlement and the beneficiaries.
(8 Marks)
b. State the special provisions in respect of settlement on unmarried children.
(12 Marks)
Total: 20 Marks
Find Related Questions by Tags, levels, etc.
- Tags: Beneficiaries, Settlements, Special Provisions, Tax Authorities, Trusts, Unmarried Children
- Level: Level 1
- Topic: Taxation of Trusts and Estates
- Series: NOV 2020