Answer to Question #206153 in Economics for yeye

Question

Trust deposits are paid into the Trust bank account. Which of the following deposits is not a trust deposit?

•  A. Money paid in by a client in the settlement of their account.
•  B. Deposits of clients pertaining to expenses that have yet to be paid.
•  C. Money paid in by a third party in respect of expenses that have yet to be paid in respect of a conveyancing transaction.
•  D. Deposits of clients in respect of services yet to be rendered.

Answer 1

Deposits made "in the name of one person, as trustee for another" are known as "trust deposits."

Assets are given to a trustee, to administer on behalf of, and for the benefit of, the beneficiaries of the trust. Ownership of the assets is relinquished to the trust. Tax aside, trusts fulfil an important function in society.

So, the correct answer is C.