Friday, April 26, 2024
Charitable Deduction Methods

6.7.1 Basic Quiz -- Life or Lives Unitrust
A charitable remainder unitrust (CRUT) pays a fixed percentage of the trust value to the income beneficiary.
     True      False
A charity cannot be an income beneficiary of a CRUT.
     True      False
A unitrust may be created for no more than two lives.
     True      False
The applicable federal rate (AFR) is not used to calculate the amount of a donor's charitable deduction.
     True      False
A unitrust may be created for the life of a beneficiary with a guaranteed number of years.
     True      False
If the guaranteed years option is selected, the charitable income tax deduction is reduced.
     True      False
A unitrust may be created for the lesser of a life or a term of years.
     True      False
If the income beneficiary passes away prior to the 20 year term of a unitrust created for the lesser of a life or a 20 year term, any remainder will be distributed to the income beneficiary's family.
     True      False
A lesser of life or term of years unitrust results in a larger charitable deduction than a straight term of 20 years.
     True      False
A lower AFR produces a higher charitable income tax deduction for remainder unitrusts.
     True      False



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