Monday, May 6, 2024
Deferred Gifts

3.9.1 Basic Quiz -- Revocable Trust - Liquidity and Probate
As Americans continue to live longer lives, it becomes more and more important to create an estate plan that will take into account the likelihood of death at a very advanced age.
     True      False
As a general rule, a person should transfer 3/4 of their estate into an irrevocable trust.
     True      False
Because a charitable remainder trust allows the bypass of capital gain, income tax savings and increased income, a prudent donor will distribute as many assets into the charitable remainder trust, during life, as possible.
     True      False
In some moderate and smaller estates, an irrevocable transfer of property is not recommended if it would put too great a burden and uncertainty upon the liquidity of the remaining estate.
     True      False
The creation of a living trust is a complete will substitute.
     True      False
The best reason for creating a living trust is that assets inside the living trust will not be subject to estate tax.
     True      False
A living trust provides certain advantages that a will can not provide.
     True      False
A charity may not serve as trustee of a revocable trust because of the inherent conflict of interest.
     True      False
A revocable trust may allow the donor to receive all of the trust income; however, the donor may not invade principal for any reason.
     True      False
At death of the grantor, the remaining trust corpus may be distributed to the one or more named qualified charities. This distribution will entitle the estate to a charitable estate tax deduction.
     True      False



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