3.10.8 Basic Quiz -- Unitrust Reformations

If a charitable remainder trust is drafted incorrectly there is, unfortunately, no recourse for the donor.

True False

There are two basic situations in which a charitable remainder trust may be reformed in order to salvage the charitable deduction.

True False

An improperly created charitable remainder trust will produce an estate tax deduction if the remainder charity actually receives the trust property.

True False

An executor may deduct certain expenses and transfer costs from the gross estate.

True False

The tax code provides for an unlimited estate tax deduction for testamentary gifts to charity.

True False

A trust that contains the basic charitable remainder trust language may be reformed if the process is completed within 90 days of the due date of the estate tax return (with extensions).

True False

A trust that does not contain the basic charitable remainder trust language may be reformed if done within 90 days of the due date of the estate tax return (with extensions).

True False

A charitable remainder unitrust must have a payout percent of at least 5% in order to be a qualified charitable remainder unitrust.

True False

The 10% minimum deduction interest test requires that a qualified charity receive at least 10% of the trust value at the date when the trust terminates.

True False

In reforming a "little or no compliance trust," the percentage given to a charitable remainder beneficiary may be changed to any percentage greater than or equal to 5% of the trust value.