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GiftLaw Pro Home   >  Chapter 6 - Charitable Deduction Methods  >  6.7 Remainder Unitrusts  >  6.7.5 Testamentary Charitable Remainder Unitrust  >  Basic Quiz

Basic Quiz - 6.7.5 Testamentary Charitable Remainder Unitrust

1. The testamentary unitrust is beneficial in that it allows donors to do pre-death estate planning.
           
2. A donor receives a charitable deduction on his or her final income tax return for creating a testamentary unitrust.
           
3. An IRA or pension plan is an excellent option for funding a testamentary unitrust.
           
4. A bypass unitrust is best used to receive appreciated property and distribute it to children.
           
5. To reduce the tax bill of the surviving spouse, it is best to allow income to accumulate in the bypass trust.
           
6. 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.
           
7. 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.
           
8. 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.
           
9. A testamentary unitrust may be created only for a spouse.
           
10. It is best to use the highest applicable federal rate (AFR) of the current month or prior two months for testamentary unitrusts.