Discuss how the RMBCA defines the term ...

[rl]

Discuss how the RMBCA defines the term distribution.

Question 2

In 2016, Bill created a trust that would become effective on his death. In the trust instrument, Bill specified that all of the income from his stocks and bonds be used for the benefit of St. John's Hospital and indicated that his brother Chad should administer the trust. a. What kind of trust is this? b. What is Bill in relationship to the trust? c. What is the corpus of the trust? d. What is Chad in relationship to the trust?

[tuwy]

Answer to Question 1

A distribution is a direct or indirect transfer of money or other property (except its own shares) or incurrence of indebtedness by a corporation to or for the benefit of its shareholders in respect of any of its shares. A distribution may be in the form of a declaration or payment of a dividend; a purchase, redemption, or other acquisition of shares; a distribution of indebtedness; or otherwise. Distributions include cash dividends, property dividends, and liquidating dividends. Acquisition of and redemption of shares also constitute distributions. Stock splits and stock dividends are not considered distributions.

Answer to Question 2

a. This is a testamentary charitable trust.
b. Bill is the settlor.
c. The stocks and bonds are the corpus.
d. Chad is the trustee.

[rl]

Thanks for the timely response, appreciate it

[scikid]

Gracias!