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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.10 Unitrust  >  3.10.8 Unitrust Reformations  >  Basic Quiz

Basic Quiz - 3.10.8 Unitrust Reformations

1. If a charitable remainder trust is drafted incorrectly there is, unfortunately, no recourse for the donor.
           
2. There are two basic situations in which a charitable remainder trust may be reformed in order to salvage the charitable deduction.
           
3. An improperly created charitable remainder trust will produce an estate tax deduction if the remainder charity actually receives the trust property.
           
4. An executor may deduct certain expenses and transfer costs from the gross estate.
           
5. The tax code provides for an unlimited estate tax deduction for testamentary gifts to charity.
           
6. A trust that contains the basic charitable remainder trust language may be reformed if the process is completed within 90 days of the due date of the estate tax return (with extensions).
           
7. A trust that does not contain the basic charitable remainder trust language may be reformed if done within 90 days of the due date of the estate tax return (with extensions).
           
8. A charitable remainder unitrust must have a payout percent of at least 5% in order to be a qualified charitable remainder unitrust.
           
9. The 10% minimum deduction interest test requires that a qualified charity receive at least 10% of the trust value at the date when the trust terminates.
           
10. In reforming a "little or no compliance trust," the percentage given to a charitable remainder beneficiary may be changed to any percentage greater than or equal to 5% of the trust value.