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GiftLaw Pro Home   >  Chapter 6 - Charitable Deduction Methods  >  6.7 Remainder Unitrusts  >  6.7.3 Life Plus Term of Years Charitable Remainder Unitrust  >  Basic Quiz

Basic Quiz - 6.7.3 Life Plus Term of Years Charitable Remainder Unitrust

1. A unitrust may be created for one life plus an additional term of years.
           
2. All current income beneficiaries of a life plus term charitable remainder unitrust must be alive at the time of the trust inception.
           
3. Rocky J. Squirrel created a one life plus 20 year term unitrust to pay first to his daughter, Natasha, then to his grandchild, Boris, who is expected to be born four months after the creation of the trust. Rocky may name Boris as a successor beneficiary.
           
4. If all of the current and successor beneficiaries pass away prior to the term of years, the trustee may name new beneficiaries.
           
5. The more beneficiaries named, the more likely that all of them will pass away prior to the expiration of the selected term.
           
6. Using the "mortality option" in the Crescendo software decreases the donor's charitable income tax deduction.
           
7. The chance that older donors will outlive the selected trust term is negligible in determining the deduction for a life plus term of years unitrust.
           
8. If more than three successor unitrust recipients are selected, the probability that they will outlive the term of years must be calculated.
           
9. The selected term of years is used to determine the amount of the donor's charitable income tax deduction.
           
10. The factors used to adjust the payout rate on a one or two life charitable remainder unitrust plus a term of years are found in Table F.