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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.6 Lead Trust Applications  >  3.6.2 Living Lead Trust  >  Basic Quiz

Basic Quiz - 3.6.2 Living Lead Trust

1. If parents wish to transfer property to children when they are more financially mature, a lead trust may help achieve that objective.
           
2. A lead trust can be funded only while the donor is alive.
           
3. If a lead trust is funded during the donor's life, the assets in the lead trust do not receive a step up in basis.
           
4. The lower the Applicable Federal Rate, the smaller the gift or estate tax with a charitable lead trust.
           
5. A charitable lead annuity trust pays charity a fixed amount for a period of time and at the end of that period the trust remainder is transferred to others.
           
6. With a lead trust, the greater the payout, the smaller the deduction.
           
7. A non-grantor lead trust is taxable on any income earned by the trust that is not paid to charity.
           
8. It is permissible to have a lead trust that lasts for the lesser of a life or a term of years.
           
9. A lead trust has a maximum 20-year payout.
           
10. A lead trust reduces the amount of gift or estate tax.