Monday, April 29, 2024
Deferred Gifts

3.3.9 Basic Quiz -- Income, Gift and Estate Taxes
When a gift annuity is created for another person, there is a gift tax consequence.
     True      False
If a donor creates a gift annuity for him or herself and another person and does not retain a power of revocation, there is no gift tax.
     True      False
With a deferred gift annuity funded for another person, the donor can use his or her annual exclusion to offset some or all of the gift tax.
     True      False
In order to use the annual exclusion for a gift, the gift must be complete and also must be a present interest.
     True      False
For a husband and wife two-life gift annuity, where no power of revocation was reserved, there is no estate tax in either estate due to the gift annuity amount.
     True      False
Whenever a donor retains a power of revocation for a gift annuity, part of the annuity will be included in the donor's estate if the donor passes away and the gift annuity is still in existence.
     True      False
When a donor funds a gift annuity for him or herself and another person with separate property, it is typically recommended that the donor retain a right of revocation.
     True      False
When calculating the income stream of the gift annuity to be included in the donor's estate, it is permissible to use the current Applicable Federal Rate or the two preceding Applicable Federal Rates.
     True      False
If a gift tax is payable, the donor can use his or her income tax deduction to offset the gift tax.
     True      False
When a donor funds a gift annuity for another person, the amount subject to gift tax is the present value of the annuity.
     True      False



© Copyright 1999-2024 Crescendo Interactive, Inc.