4.13.4 Basic Quiz -- Testamentary CRT

An excellent planning strategy is for an employee to transfer stock options to a testamentary charitable remainder trust.

True False

Stock options, pension plans, savings bonds and commercial annuities are examples of IRD assets.

True False

If a decedent leaves stock options to his or her family at death, the family receives a step up in basis on the stock options.

True False

An employee's company plan may impose restrictions on the transferability of stock options.

True False

A bequest of stock options to charity produces no income or estate tax liability.

True False

A donor may list the CRT trustee on his or her stock options' beneficiary designation form.

True False

Income in respect of a decedent (IRD) is generally the result of assets that have untaxed ordinary income or capital gain at the time of the decedent's death.

True False

An employee during life may transfer an ISO to charity or a planned gift.

True False

The IRD asset is a passive asset and generates no UBTI to the CRT.

True False

After funding a testamentary charitable remainder trust with stock options, it is likely that the income beneficiary will receive mostly tax-free income from the trust.