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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.1 Annuity Remainder Trust  >  3.1.1 Annuity Trust Duration and Recipients  >  Basic Quiz

Basic Quiz - 3.1.1 Annuity Trust Duration and Recipients

1. An annuity trust can only be created for one or two lives.
           
2. All annuity trust beneficiaries must be alive and named in the trust document at the time the trust is created.
           
3. A charity cannot be an income beneficiary of an annuity trust; it can only be a remainder beneficiary.
           
4. It is not possible to create an annuity trust for one life or two lives with a guaranteed term of years.
           
5. If there is a qualified contingency in the annuity trust document such that the term of the trust may be reduced, the donor receives an additional deduction for the possibility that the trust will not last for the full term.
           
6. All annuity trust payments for a given year must be made by December 31st of that year.
           
7. It is possible to create an annuity trust for the lesser of a life or a term of years.
           
8. If a term of years annuity trust is created, the beneficiaries of the trust do not need to be specifically named in the trust document.
           
9. The payout from an annuity trust depends on how well the trust investments performed in the previous year.
           
10. It is never permissible for an annuity trust to pay income to another trust.