Sunday, April 28, 2024
Deferred Gifts

3.6.4 Basic Quiz -- Tandem Trusts
Establishing tandem trusts allows for both an income stream to beneficiaries and a distribution of principal to beneficiaries.
     True      False
A tandem trust plan involves both a charitable remainder trust and a charitable lead trust.
     True      False
A tandem trust term can last as long as the donor chooses.
     True      False
In a tandem trust plan, it is better to fund the testamentary lead trust with an IRA or other IRD assets and the testamentary CRT with appreciated land or stock.
     True      False
With a tandem trust plan, it is permissible to use the highest Applicable Federal Rate for the CRT and the lowest Applicable Federal Rate for the lead trust.
     True      False
In a tandem trust plan, both the lead trust and the charitable remainder trust are for a term of years.
     True      False
The testamentary CRT and the testamentary lead trust are typically funded through the donor's will or living trust.
     True      False
At the end of the CRT and lead trust, the lead trust principal is distributed to charity while the CRT corpus is distributed to other heirs.
     True      False
The CRT and lead trust must have the same payout percentages in a tandem trust plan.
     True      False
Both the CRT and the lead trust need to pass the 10% minimum deduction test.
     True      False



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