Monday, May 6, 2024
Deferred Gifts

3.5.1 Basic Quiz -- Family, or Non-Grantor, Lead Trusts
A lead trust must pay out at least 5% and no more than 50%.
     True      False
The longest term allowable for a lead trust is 20 years.
     True      False
It is permissible to have a lead trust for the lesser of a life or a term of years.
     True      False
A lead trust with the remainder passing solely to the family of the donor always produces an income tax deduction.
     True      False
A lead trust is a tax-exempt trust.
     True      False
Lead trusts are an excellent way to transfer property to family at a reduced transfer tax cost.
     True      False
The lead trust measuring life is limited to that of the donor, a spouse or a lineal ancestor or spouse of a lineal ancestor of the remainder beneficiaries.
     True      False
The 10% minimum deduction interest test does not apply to lead trusts.
     True      False
The lower the Applicable Federal Rate, the higher the deduction with a charitable lead trust.
     True      False
With a living lead trust, there is no step up in basis of the trust assets.
     True      False



© Copyright 1999-2024 Crescendo Interactive, Inc.