Wednesday, May 8, 2024
Specific Property Gifts

4.7.5 Basic Quiz -- Charitable Remainder Trusts
During a sale and unitrust combination, it is extremely important that the donor transfer the real estate into the trust prior to the sale to a new buyer.
     True      False
Certain precautions should be taken in order to secure the benefits of the unitrust and sale plan.
     True      False
It is not possible for a donor to receive cash and create a charitable remainder unitrust with one piece of real estate.
     True      False
A donor who desires maximum cash withdrawal and zero tax liability should choose the sale and unitrust combination plan.
     True      False
Pursuant to the tax code, a sale and unitrust plan must combine a one- or two-life unitrust with the sale only.
     True      False
Because a charitable remainder unitrust is involved in the transaction, the donor will be able to bypass all of the gain on the appreciated real estate.
     True      False
For donors who wish to downsize from their current larger home to a smaller home, the sale and unitrust option can produce a zero tax sale with significant cash retained by the donors.
     True      False
An advantage to a unitrust and sale plan funded with a home is that the donors may live in the home until the home is sold.
     True      False
The home exclusion allows an individual to exclude $250,000 of gain from the sale of a principal residence. In the case of spouses, the home exclusion allows for a $500,000 exclusion of gain from a sale of their principal residence.
     True      False
A charitable remainder unitrust is not an ideal solution where a donor is financially unable to contribute all of the real estate.
     True      False



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