Wednesday, May 1, 2024
Deferred Gifts

3.5.8 Basic Quiz -- Lead Trust Generation-Skipping Transfer Taxation
Twenty years is the maximum period that a lead trust can last.
     True      False
If lead trust assets are to be transferred to grandchildren and the parents are still living when the lead trust is created, generation skipping transfer taxes may apply to the transfer.
     True      False
Only a gift tax or a generation skipping transfer tax, but not both, will apply to a charitable lead trust for grandchildren.
     True      False
If a lead trust is created for grandchildren, it is best to choose a unitrust payout for the lead trust.
     True      False
All generation skipping transfer taxes are paid at trust termination.
     True      False
Gift taxes are due at the termination of the lead trust.
     True      False
If an annuity payout is chosen for a lead trust to grandchildren, generation skipping transfer taxes will be applied for the entire value of the trust corpus at termination that is in excess of the augmented GST exemption.
     True      False
In addition to the donor's lifetime gift tax exemption, he or she also has a generation skipping transfer tax exemption.
     True      False
A donor can create multiple lead trusts so that principal passes to family at different times.
     True      False
The longer the lead trust, the smaller the deduction.
     True      False



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