Sunday, April 28, 2024
Specific Property Gifts

4.6.5 Basic Quiz -- IRA to Unitrust for Children
An IRA that is passed on to a CRT for a child can be paid either for a term of years or for the lifetime of the child.
     True      False
It is permissible to use an IRA to fund a testamentary CRT for a child.
     True      False
If a CRT is named as the designated beneficiary of an IRA, the IRA owner will have to take minimum distributions based on a one-life schedule of the IRA owner.
     True      False
If an estate is subject to estate taxes, it is recommended to use an IRA to fund a CRT. This is because the 691(c) deduction will flow through the CRT to the non-charitable beneficiaries.
     True      False
When an IRA is distributed to a CRT, no income taxes are paid on the amount of the IRA received by the CRT.
     True      False
All amounts transferred from an IRA to a CRT are exempt from estate taxes.
     True      False
It is possible for an IRA owner to establish a CRT to pay to her for life and then to pay to her child for a term of years and have the IRA distributed to that trust at her passing.
     True      False
An IRA can be transferred to a CRT while the IRA owner is still living and the IRA owner will not have to report any of the IRA as taxable income because it is going to a tax-exempt CRT.
     True      False
It is possible to fund a testamentary CRT for a term of years to pay to children and have the payout over that term approximately equal the funding amount of the CRT.
     True      False
The maximum term for a term of years CRT is 20 years.
     True      False



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