Monday, April 29, 2024
Charitable Deduction Methods

6.4.3 Basic Quiz -- Super Grantor Lead Trust
A super grantor lead trust is designed to lessen the impact of estate taxes imposed on the grantor's estate.
     True      False
The creator of a super grantor lead trust may not retain control over the income or the reversionary interest.
     True      False
The grantor cannot retain any type of control in a super grantor lead trust.
     True      False
The grantor should retain the right to control allocation among beneficiaries in order to qualify the trust as a super grantor lead trust.
     True      False
Any gain recognized by a super grantor lead trust must be reported on the charity's tax return.
     True      False
A super grantor lead trust qualifies the grantor for a charitable income tax deduction.
     True      False
Payments made to the charitable beneficiary must be reported on the grantor's income tax return.
     True      False
It is not permissible to create a super grantor lead trust for the lesser of a life or term of years.
     True      False
The grantor's charitable income tax deduction is equal to the present value of the payments from the trust.
     True      False
Karl creates a super grantor lead trust and retains the right to control income distribution. The trust value will not be artificially included in Karl's estate.
     True      False



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