Sunday, May 5, 2024
Taxation and Giving

1.4.4 Basic Quiz -- Lead Annuity Trust GSTT
Charitable lead trusts (CLTs) are excellent vehicles to benefit grandchildren while minimizing transfer taxes.
     True      False
An excellent way to get a "double discount" is to combine a FLP or LLC with a CLT.
     True      False
With a charitable lead annuity trust (CLAT), the applicable fraction (and therefore the inclusion ratio) is computed at the creation of the trust.
     True      False
The allocation of GSTT exemption to a charitable lead annuity trust (CLAT) is a straightforward process.
     True      False
A charitable lead trust for grandchildren (or children) gives an example of a taxable distribution.
     True      False
A taxable distribution occurs when there is a distribution from a trust to a skip person.
     True      False
A taxable termination only occurs when a trust loses its tax-exempt status.
     True      False
In the case of a taxable termination, the trustee shall pay the GSTT due.
     True      False
Jacqueline Kennedy Onassis's will created a testamentary charitable lead annuity trust.
     True      False
A charitable lead annuity trust produces the highest charitable deduction when used in conjunction with the highest applicable federal rate (AFR or Rate of the Month).
     True      False



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