Regarding beneficiaries and remaindermen, current life-income beneficiaries prefer to receive ________; remaindermen would rather have ________.
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A. B. C. D. E.Explanation
Trustees recognize a conflict of interests often exists between the primary or current beneficiaries of a trust and the remaindermen (secondary or later beneficiaries of the trust). Current life-income beneficiaries would prefer to receive a high rate of current income; remaindermen would rather have growth and stability of principal. Trustees thus have a duty to exercise their best skill and care to serve all beneficiaries impartially and with equal consideration of their needs.