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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.10 Unitrust  >  3.10.5 Selecting the Trustee  >  Basic Quiz

Basic Quiz - 3.10.5 Selecting the Trustee

1. Due to the self-dealing rules, a donor may not serve as trustee of his or her charitable remainder unitrust.
           
2. One advantage of using a corporate trustee is their objectivity.
           
3. Banks, trust companies and trust departments of major financial firms are a few examples of corporate trustees.
           
4. One advantage of having a corporate trustee serve as trustee of a charitable unitrust is that they charge a very nominal fee for their service.
           
5. Whenever possible, charities should serve as trustees of charitable trusts.
           
6. Charities are not permitted to require a donor vest in them a portion of any charitable remainder unitrust in which the charity serves as trustee at little or no cost.
           
7. For the donor who desires the greatest amount of control and flexibility, the corporate trustee is the best option.
           
8. In general, the self-dealing rules prevent the donor, the donor's children, grandchildren and their spouses from purchasing, selling, leasing or otherwise transacting business with their charitable remainder unitrust.
           
9. If a donor serves as trustee, then he or she may make any investment choices that they deem reasonable.
           
10. For charitable remainder unitrusts, Form 5227 must be filed each year with the Internal Revenue Service.