Sunday, April 28, 2024
Deferred Gifts

3.3.3 Basic Quiz -- Deferred Annuities
A deferred gift annuity, similar to a current gift annuity, is backed by all of the assets of the charity to ensure that gift annuity payments will be made.
     True      False
The major difference between a deferred gift annuity and a current gift annuity is that payments from the deferred gift annuity will not begin for at least one year and one day from the funding date.
     True      False
When a donor funds a deferred gift annuity for another person, he or she is allowed to use an annual exclusion to offset the gift tax.
     True      False
Deferred gift annuity rates are higher than current gift annuity rates because the annuitant waits longer before receiving the annuity payout.
     True      False
In the gift annuity contract, it is permissible to guarantee a minimum payment to the annuitant.
     True      False
If the deferral period is long enough on a deferred charitable gift annuity, the payout rate can become quite high.
     True      False
A deferred gift annuity with a very high payout rate will likely cause the charity to have to pay out more than it is able to earn in the reserve investments.
     True      False
If Treasury issues new mortality tables between the funding date and the annuity starting date for purposes of determining the return multiples, it may be necessary to recalculate the return multiple and the exclusion ratio at the annuity starting date.
     True      False
If an annuitant passes away before the deferred gift annuity starts to pay out, the charity never has to make any payment to the annuitant.
     True      False
With a deferred gift annuity, the donor must wait to take the deduction until he or she starts to receive actual payments from the annuity.
     True      False



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