3.10.1 Basic Quiz -- Unitrust Duration and Recipients

It is permissible to create a charitable remainder unitrust that has a term of 25 years.

True False

A charitable remainder unitrust allows the income beneficiary to select the payout amount each year.

True False

It is permissible to create an eight-life charitable remainder unitrust.

True False

It is permissible to create a unitrust for life or lives with a guaranteed number of years.

True False

Including a guaranteed number of years in a charitable remainder unitrust has two disadvantages: 1) a decreased charitable income tax deduction, and 2) the possibility of losing the marital deduction.

True False

It is possible to create a charitable remainder unitrust that will last for the lesser of life or a term of years.

True False

It is permissible for a charitable remainder unitrust to pay for one or two lives and then a fixed term of 20 years.

True False

In the case of a charitable remainder unitrust that will last for the lives of individuals, all named individuals must be alive and ascertainable at the time the trust is created.

True False

A charitable organization may be named as one of the income beneficiaries of a charitable remainder unitrust.

True False

The addition of a qualified contingency in a charitable remainder unitrust document will generally increase the charitable deduction, because the duration of the trust may now terminate at an earlier date.