In a trust, who is typically named to receive income or principal distributions?

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Multiple Choice

In a trust, who is typically named to receive income or principal distributions?

Explanation:
The person who receives income or principal from a trust is the beneficiary. The trust’s terms specify who benefits from the assets, and distributions—whether income during life or principal at certain events—are paid to those beneficiaries. The trustee is the fiduciary who holds and manages the assets and makes distributions according to the trust, not the recipient themselves. The grantor (settlor) is the creator of the trust, and a testator is the person who creates a will (though a will can establish a testamentary trust, the recipient of distributions remains the beneficiary).

The person who receives income or principal from a trust is the beneficiary. The trust’s terms specify who benefits from the assets, and distributions—whether income during life or principal at certain events—are paid to those beneficiaries. The trustee is the fiduciary who holds and manages the assets and makes distributions according to the trust, not the recipient themselves. The grantor (settlor) is the creator of the trust, and a testator is the person who creates a will (though a will can establish a testamentary trust, the recipient of distributions remains the beneficiary).

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