3.10.5 Basic Quiz -- Selecting the Trustee

Due to the self-dealing rules, a donor may not serve as trustee of his or her charitable remainder unitrust.

True False

One advantage of using a corporate trustee is their objectivity.

True False

Banks, trust companies and trust departments of major financial firms are a few examples of corporate trustees.

True False

One advantage of having a corporate trustee serve as trustee of a charitable unitrust is that they charge a very nominal fee for their service.

True False

Whenever possible, charities should serve as trustees of charitable trusts.

True False

Charities are not permitted to require a donor vest in them a portion of any charitable remainder unitrust in which the charity serves as trustee at little or no cost.

True False

For the donor who desires the greatest amount of control and flexibility, the corporate trustee is the best option.

True False

In general, the self-dealing rules prevent the donor, the donor's children, grandchildren and their spouses from purchasing, selling, leasing or otherwise transacting business with their charitable remainder unitrust.

True False

If a donor serves as trustee, then he or she may make any investment choices that they deem reasonable.

True False

For charitable remainder unitrusts, Form 5227 must be filed each year with the Internal Revenue Service.