Sunday, April 28, 2024
Deferred Gifts

3.5.6 Basic Quiz -- Gift/Estate Tax Deductions for Lead Trust
The deduction for a lead trust is equal to the present value of the lead trust payments to charity.
     True      False
The lead annuity trust pays a fixed payment to charity each year for the term of the trust.
     True      False
The higher the Applicable Federal Rate used to calculate the lead trust deduction, the higher the deduction will be.
     True      False
With a charitable lead trust, you must use the current month's Applicable Federal Rate.
     True      False
A family, or non-grantor, lead trust produces a gift or estate tax deduction.
     True      False
A lead trust may be written for lives, a term of years, or the lesser of lives or a term of years.
     True      False
The standard mortality tables are always used when calculating the taxable transfer amount of a lead trust.
     True      False
To have a qualified charitable lead trust, the deduction must be at least 10% of the trust funding amount.
     True      False
If gift tax is owed when creating a lead trust, it need not be paid until the trust property is distributed to the family.
     True      False
The donor may apply any unused applicable lifetime exemption to the amount subject to gift tax.
     True      False



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