Question

Bonita is considering establishing a trust for her mother that will pay out $1,000 each month. The trust department at a local bank will act as trustee. Bonita will retain the right to revoke the trust and be the remainder beneficiary of the trust. If the trust earns $15,000 for the year, who must pay income tax on earnings?

Answer 1

Answer:

The Dependent or the Beneficiary collect $1000 every month pay income tax

Explanation:

Bonita is the policyholder that pay premium .

The mother is the dependent and the beneficiary ,who takes the trust monthly

The bank is the trustee that  disburse the trust fund to the beneficiary month .