Sunday, April 28, 2024
Deferred Gifts

3.7.5 Basic Quiz -- Life Estate vs. Qualified Personal Residence Trust (QPRT)
The gift of a remainder interest must be accomplished by the creation of a trust and the transfer of a deed into that trust.
     True      False
A donor who owns her home outright may not receive a charitable income tax deduction for the transfer of a remainder interest in her residence.
     True      False
A gift of a remainder interest in a personal residence or farm is not recognized for estate tax charitable purposes.
     True      False
A donor may retain an interest for a term of years, rather than a life estate, in a home or farm.
     True      False
A personal residence is defined as the principal residence owned and used by the individual in two of the past five years.
     True      False
If a life estate arrangement is created for the donor and another person, the transfer may be subject to gift tax.
     True      False
A qualified personal residence trust (QPRT) is the vehicle by which a donor may transfer the remainder interest in a home to charity.
     True      False
A person may transfer up to three residences into a QPRT.
     True      False
The two primary benefits a QPRT provides are a charitable income tax deduction and a bypass of capital gains.
     True      False
If the creators of a QPRT fail to outlive the term of years, the residence will be included in their estate.
     True      False



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