9.3.2 Quiz: Estate Planning
Question 1 of 10
Why might parents set up a trust for a child?
A. Because they know their assets will gain value as the child ages
O B. Because they want to ensure an honest executor is chosen
C. Because they don't want to bequeath all their assets
D. Because they worry the child won't manage money properly

Respuesta :

The parents might set up  a trust for a child because they want to enure an honest executor is chosen. Thus, the correct answer is B.

What is trust?

Trust is refer as association to be formed, to take care of all the wealth and property of an individual. This trust will take care of the property until the new responsibility holder arrives.

Parents set up trust for their children to protect their future, as they do not make their presence all the time. This trust provide financial security to the child if the parents are created trust.

Most parents want the benefits of their time and investment to be passed on to future generations, and setting up a trust is a secure way to ensure that your wishes are honoured when you die away.

Therefore, option B to ensure an honest executor is selected is the appropriate answer.

Learn more about Trust, here:

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