Friday, May 3, 2024
Charitable Deduction Methods

6.7.5 Basic Quiz -- Testamentary Charitable Remainder Unitrust
The testamentary unitrust is beneficial in that it allows donors to do pre-death estate planning.
     True      False
A donor receives a charitable deduction on his or her final income tax return for creating a testamentary unitrust.
     True      False
An IRA or pension plan is an excellent option for funding a testamentary unitrust.
     True      False
A bypass unitrust is best used to receive appreciated property and distribute it to children.
     True      False
To reduce the tax bill of the surviving spouse, it is best to allow income to accumulate in the bypass trust.
     True      False
The ability to make payments of the earned income for the life of the surviving spouse from a bypass trust results in a greater value than if the IRA had been distributed to the bypass trust and subjected to high income taxation.
     True      False
If a testamentary unitrust is created for someone other than a spouse and the estate is larger than the exemption equivalent, there will be no estate taxes due.
     True      False
An estate that includes a testamentary unitrust created for a spouse and all other estate assets going to the spouse will incur an estate tax.
     True      False
A testamentary unitrust may be created only for a spouse.
     True      False
It is best to use the highest applicable federal rate (AFR) of the current month or prior two months for testamentary unitrusts.
     True      False



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