3.9.2 Basic Quiz -- Remainder to Charity

The estate tax exemption amount remained unchanged during the years 2007 to the present.

True False

With the increase in the estate tax exemptions over years, the majority of estates will not be subject to tax when the owners pass away.

True False

For a donor with substantial charitable intent, a revocable trust is an excellent way to provide for charity while maintaining financial flexibility.

True False

A revocable trust that names charity as the remainder recipient produces a charitable income tax deduction equal to the present value of the remainder interest to the donor in the year the trust is created.

True False

In order to receive an estate tax deduction, the right of the charity must be fully vested.

True False

In general, transfers to fraternal organizations are not deductible.

True False

A transfer for a charitable purpose may be lost if it is deemed that the charitable purpose has not been sufficiently and precisely stated.

True False

If an estate tax return is filed, the net cost of a $100,000 transfer to charity would naturally be $100,000.

True False

Bequests to foreign charities are not deductible gifts because public policy reasons prefer to encourage gifts to domestic charities.

True False

A properly created living trust will not be includable in the decedent's estate for estate tax purposes.