GiftLaw Pro, our charitable tax reference service, features detailed information on gift and estate planning strategies. It includes links to relevant Internal Revenue code sections, regulations, rulings, cases and more.

1. There is no minimum or maximum payout percent from an annuity trust.

True False

2. The donor may specify a specific dollar amount to be paid from annuity trust.

True False

3. If a donor specifies a specific dollar amount that is later determined to be less than 5% of the initial fair market value, the donor must amend the payout to at least be 5%.

True False

4. In order to qualify as a charitable remainder annuity trust, the charitable deduction must be at least 10% of the initial fair market value of the asset contributed.

True False

5. It may be impossible for younger beneficiaries to qualify for a lifetime annuity trust payout.

True False

6. For an annuity trust funded with an unmarketable asset, the initial fair market value of an asset is determined by the sale price of that asset.

True False

7. If an annuity trust is funded with cash or publicly-traded stock, the donor still needs to have an appraisal.

True False

8. With an annuity trust, it is permissible for the trustee to withhold an annual payment if the trust is not producing enough income.

True False

9. The payout from an annuity trust is determined when the trust is established and never changes for the life of the trust.

True False

10. It is permissible for a donor to change the annuity trust payout once the trust is created if he or she deems the payout too high.

True False

Basic Quiz - 3.1.3 Annuity Trust Payouts