Wednesday, May 8, 2024
Major/Current Gifts

2.3.2 Basic Quiz -- Gift and Insurance Trust
Even when a donor makes a gift to charity, it is still possible with an insurance trust to preserve a similar value to pass on to family.
     True      False
If done properly, amounts passing to family from an irrevocable life insurance trust (ILIT) are not subject to gift or estate tax.
     True      False
With an irrevocable life insurance trust, the donor may still retain the right to change the beneficiaries of the trust.
     True      False
By using the gift and insurance trust plan, it is possible to reduce the value of the estate, benefit charity and provide for family.
     True      False
The Crummey power can be used when funding an insurance trust to reduce or eliminate the gift tax.
     True      False
If a donor decides to implement a gift plus insurance plan, it is advisable for the donor to fund the insurance trust first and then make the gift to charity.
     True      False
A life insurance trust is usually funded with a term life insurance policy.
     True      False
If one spouse is uninsurable, it is impossible to use a life insurance trust.
     True      False
Once an irrevocable life insurance trust is established, it is permissible for the donor to borrow against the life insurance policy.
     True      False
The annual exclusion is not allowable for contingent life insurance trust beneficiaries.
     True      False



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