Sunday, April 28, 2024
Deferred Gifts

3.11.1 Basic Quiz -- Education Unitrust
A charitable remainder unitrust can be used to provide a college education for children, grandchildren or other family members.
     True      False
An education unitrust typically lasts for the lifetime of the child.
     True      False
A donor who creates an education unitrust will receive a charitable income tax deduction equal to the present value of the income interest going to the children.
     True      False
Because the donor is creating a trust for the benefit of another person, the capital gains will not be bypassed and, unfortunately, will be fully recognized by the donor upon transfer.
     True      False
The income payout from the education unitrust will be taxed to the donor under the assignment of income doctrine.
     True      False
The Kiddie Tax applies to children up to the age of 16 (21 for students).
     True      False
An education unitrust will never be subject to gift taxes because charity is the remainder recipient.
     True      False
A donor may apply his or her gift tax annual exclusion to an education unitrust, assuming that the donor did not retain the testamentary power of revocation.
     True      False
If the trustee of an education unitrust has the discretion to allocate income among children, then the initial gift tax annual exclusion is lost.
     True      False
With a term of years education unitrust, it is possible for the donor to retain the testamentary right of revocation.
     True      False



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