3.6.6 Basic Quiz -- Generation-Skipping Transfer Taxes - Lead Trust for Children and Grandchildren

When a donor creates several lead trusts, it is possible to transfer property to both children and grandchildren.

True False

If property is transferred to a living lead trust for grandchildren, only the generation-skipping transfer tax will apply, but not gift tax.

True False

To achieve an even higher deduction, it is permissible to use a family limited partnership to fund several lead trusts, some of which may pass to grandchildren.

True False

When grandparents fund a lead trust for the benefit of their grandchildren, their annual exclusion is available to offset some of the gift tax.

True False

When grandparents make gifts of property to grandchildren there is a generation-skipping transfer tax exemption.

True False

By using a lead trust, it allows the grandchildren time to mature before inheriting property.

True False

It is permissible to have a lead trust pay to a family foundation.

True False

When using a lead trust to transfer property, the transfer costs will be less than if no lead trust were used.

True False

The generation-skipping transfer tax exemption is not available when using a lead trust.

True False

When creating a lead trust for grandchildren, it is typically better to choose a unitrust payout for the lead trust, rather than an annuity trust payout.