Monday, April 29, 2024
Deferred Gifts

3.6.1 Basic Quiz -- Double Discount Lead Trust
The double discount lead trust allows a donor to transfer property to family with greatly reduced or eliminated transfer tax.
     True      False
A family limited partnership, by itself, does not produce a charitable gift.
     True      False
A family limited partnership can be created for any reason.
     True      False
The assets in the family limited partnership may be discounted because of the lack of marketability and/or the lack of liquidity.
     True      False
The double discount lead trust involves using both a family limited partnership (or limited liability company) and a charitable lead annuity trust.
     True      False
The discount for a family limited partnership with liquid securities is usually about 50%.
     True      False
If the FLP operates an active business and family limited partnership shares are placed in a lead trust, the unrelated business taxable income is not a problem because a lead trust is a taxable trust.
     True      False
There are no adverse consequences for placing an FLP with debt in a lead trust.
     True      False
By using an FLP (or LLC) and lead trust it is possible to transfer assets to family in a shorter period of time without any gift or estate tax.
     True      False
If a donor wished to do a double discount lead trust, it is important to have an experienced attorney and appraiser.
     True      False



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