Monday, April 29, 2024
Charitable Deduction Methods

6.7.2 Basic Quiz -- Term of Years Unitrust
A unitrust may be created for a term of years.
     True      False
It is permissible to create a unitrust for a term of 25 years.
     True      False
It is permissible for the trustee to "sprinkle" income payments among a class of beneficiaries.
     True      False
A charity may be the sole income beneficiary of a term of years unitrust.
     True      False
The donor receives a charitable tax deduction for the value of the remainder interest in a term of years unitrust.
     True      False
The charitable income tax deduction must be calculated using the applicable federal rate (AFR) for the month the trust was created.
     True      False
Sec. 561 sets forth the method for determining the charitable deduction for a term of years unitrust.
     True      False
The lower the AFR, the higher the charitable deduction for a term of years unitrust.
     True      False
It is possible to create a term of years unitrust for a class of beneficiaries.
     True      False
The beneficiary's age is used to determine the amount of the donor's charitable income tax deduction in a term of years unitrust.
     True      False



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