3.2.2 Basic Quiz -- Estate Tax Deductions

If a donor leaves a bequest to a non-qualified charity from his or her estate, the estate will qualify for an estate tax charitable deduction.

True False

Gifts to a foreign charity are not eligible for an estate tax deduction.

True False

Gifts during life to a foreign charity are not eligible for an income tax deduction.

True False

If an estate is to receive a deduction for a gift to charity, the charity must have a vested right in that gift.

True False

If a testator wishes to leave a bequest to charity, the drafting of the bequest language is very important to ensure that the estate receives an estate tax charitable deduction.

True False

If an estate is taxable at a 40% rate, a bequest of $100,000 costs the donor only $60,000.

True False

If a donor creates a charitable remainder trust for his or her life, at the donor's death, the trust corpus is included in the estate, but the estate receives a 100% charitable tax deduction for the value of the trust corpus.

True False

An estate tax deduction reduces the estate tax by the same dollar amount as the deduction.

True False

Estate tax deductions are allowable for any gift from the estate to charity.

True False

If a donor, through a beneficiary designation, leaves an IRA or qualified retirement plan to charity, that IRA or qualified pension plan will not be subject to income or estate taxes.