Monday, May 6, 2024
Charitable Deduction Methods

6.4.2 Basic Quiz -- Living Family Lead Trust
A living family lead trust is a charitable lead trust (CLT) in which the donor gives his or her family an income interest in the trust.
     True      False
The donor retains an interest for him- or herself in a living family lead trust.
     True      False
A CLT must be created as a unitrust.
     True      False
To increase a donor's charitable gift tax deduction for a CLT, it is best to use the lowest applicable federal rate (AFR).
     True      False
An EZ lead trust is a CLT created for the greater of a life or a term of years.
     True      False
An EZ CLT cannot be created for the lesser of two lives or a term of years.
     True      False
A lead trust for the lesser of a life or a term of years is tax-exempt.
     True      False
No time adjustment factor is necessary for annuity trusts paying out other than monthly.
     True      False
The donor's charitable deduction is equal to the present value of the income stream to charity.
     True      False
With a lesser of life or term of years CLT, the charitable deduction is slightly decreased because there is a possibility that the person with the measuring life will pass away before the selected term of years.
     True      False



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