3.1.5 Basic Quiz -- Selecting the Trustee

There are three basic choices for a trustee of a charitable remainder trust.

True False

Typically, the corporate trustee is the most objective and has the most expertise.

True False

Charities usually serve as trustee for modest or no cost.

True False

Charities do not accept a lot of risk when serving as trustee of a charitable remainder trust.

True False

Serving as their own trustee appeals to many donors because of the control they can maintain over the investments and because of the low cost.

True False

Donors who choose to serve as their own trustees should be aware of the duties involved and the potential consequences for not abiding by those rules.

True False

If a trustee does not make payments at least annually or follow the charitable remainder trust rules, the trust could be disqualified as a charitable remainder trust.

True False

A donor who chooses to serve as his or her own trustee can appoint someone to handle the trust investments and another to administer the trust.

True False

A charitable remainder trust should try to avoid unrelated business income.

True False

If a trustee makes incorrect payments, the trustee must correct the payments within that year.