Wednesday, May 1, 2024
Specific Property Gifts
4.6.4 Basic Quiz -- IRA to Trust for Surviving Spouse
A QTIP trust is created to reduce or eliminate estate taxes.
True
False
In order for a QTIP trust to not be subject to estate taxes at its creation, the surviving spouse must be entitled to receive all income from the trust while he or she is living.
True
False
Funding a bypass trust with an IRA can leave very little of that IRA to successor beneficiaries, who are usually the children.
True
False
It is possible to name a charitable remainder unitrust as the IRA designated beneficiary.
True
False
An IRA owner should use a CRT only if there is enough liquidity from other estate assets for the surviving spouse.
True
False
By creating a testamentary CRT, the IRA owner can give his or her spouse the flexibility to reduce current income and thereby reduce income taxes.
True
False
A bypass unitrust is an alternative to a standard bypass trust.
True
False
The bypass unitrust is not the same as a testamentary unitrust.
True
False
A bypass unitrust can only be established to have a net income with makeup payout.
True
False
If a bypass UT is the beneficiary of an IRA, after the bypass UT is funded the IRA ceases to exist.
True
False
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