Sunday, May 5, 2024
Deferred Gifts

3.6.2 Basic Quiz -- Living Lead Trust
If parents wish to transfer property to children when they are more financially mature, a lead trust may help achieve that objective.
     True      False
A lead trust can be funded only while the donor is alive.
     True      False
If a lead trust is funded during the donor's life, the assets in the lead trust do not receive a step up in basis.
     True      False
The lower the Applicable Federal Rate, the smaller the gift or estate tax with a charitable lead trust.
     True      False
A charitable lead annuity trust pays charity a fixed amount for a period of time and at the end of that period the trust remainder is transferred to others.
     True      False
With a lead trust, the greater the payout, the smaller the deduction.
     True      False
A non-grantor lead trust is taxable on any income earned by the trust that is not paid to charity.
     True      False
It is permissible to have a lead trust that lasts for the lesser of a life or a term of years.
     True      False
A lead trust has a maximum 20-year payout.
     True      False
A lead trust reduces the amount of gift or estate tax.
     True      False



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