Sunday, April 28, 2024
Deferred Gifts

3.7.3 Basic Quiz -- Life Estate Rollover Options
If a life tenant desires to terminate the life estate arrangement early, one option would be for the life tenant and charity to agree to sell the property to a new buyer.
     True      False
With the joint sale option, the donor and the charity negotiate the value of each of their respective ownership interests.
     True      False
A donor who sells his or her life estate interest will be able to use the home exclusion to offset any capital gains that may be due upon the sale.
     True      False
If a life tenant desires to terminate the life tenant arrangement early, one option is for the donor to make a current gift of his or her life estate interest to charity.
     True      False
If a donor decides to transfer his or her life estate interest to charity prior to death, he or she will be entitled to a charitable income tax deduction for the value of the life interest.
     True      False
If a life tenant desires to end the life estate arrangement early, it may be possible to transfer the life estate interest to a charitable remainder unitrust.
     True      False
If a life tenant desires to end the life estate arrangement early, it should be possible to transfer the life estate interest in exchange for a gift annuity.
     True      False
When creating a life estate interest, the donor must decide ahead of time which termination options he or she wants to pursue. This must be recorded on the deed.
     True      False
For life estate arrangements, the lower the AFR, the higher the charitable tax deduction.
     True      False
When exercising a life estate rollover option, the highest AFR should be used.
     True      False



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