Monday, May 6, 2024
Specific Property Gifts

4.2.5 Basic Quiz -- Charitable Unitrust Bailout
When the founder of a family business retires, the business in nearly all cases is sold to an outside party or goes out of business.
     True      False
An excellent inheritance plan involves the transfer of non-voting stock and minority interests in a company to children who are not involved with the company.
     True      False
Parents usually have three goals in contemplating the transition out of their family business: secure retirement income, smooth business succession and a fair inheritance plan.
     True      False
A business owner who transfers his or her stock into a CRT is prohibited from repurchasing the stock from the CRT pursuant to the self-dealing rules.
     True      False
It is an act of self-dealing when a donor's corporation redeems shares from the donor's charitable remainder trust.
     True      False
If a donor wants to claim a charitable income tax deduction, each transfer of the donor's corporate stock must be substantiated by a qualified appraisal.
     True      False
It is common for parents to transfer non-voting common stock to their children and retain voting common stock for themselves.
     True      False
A net income plus makeup unitrust (NIMCRUT) is an excellent option for business owners who desire charitable deductions now, but who do not wish to increase their income now.
     True      False
A FLIP unitrust's trigger event may be the retirement of the business owner.
     True      False
The double discount lead trust involves using both a family limited partnership (FLP) and a charitable lead annuity trust (CLAT).
     True      False



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