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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.10 Unitrust  >  3.10.6 Gifts from a Charitable Remainder Unitrust During Life  >  Basic Quiz

Basic Quiz - 3.10.6 Gifts from a Charitable Remainder Unitrust During Life

1. As a general rule, a gift of a partial interest does not qualify for a charitable income tax deduction.
           
2. If a donor decides to transfer his or her unitrust income stream to charity prior to the donor's death, the donor will be entitled to a charitable income tax deduction for the value of his or her income interest.
           
3. For charitable remainder unitrusts, the higher the applicable federal rate, the higher the charitable tax deduction.
           
4. When transferring an income interest to charity, the lowest applicable federal rate usually produces the highest deduction.
           
5. The transfer of an income stream is an excellent option for donors who desire a charitable deduction now and no longer need the income from their unitrust.
           
6. It is permissible to make "in kind" distributions to charity from a CRT.
           
7. With a net income only (NICRUT) or net income plus makeup unitrust (NIMCRUT), the deduction calculation for the income interest should use the lesser of the applicable federal rate or the stated unitrust payout percent for the unitrust payout percentage.
           
8. A testamentary right of revocation allows a donor to revoke the charitable remainder interest and distribute that interest to another charity.
           
9. Donors who wish to give only a partial interest in their property to charity (as opposed to their entire interest) subject themselves to more stringent rules and risk receiving no charitable deduction.
           
10. The gift of an income interest to charity will require Form 8283 to be filed, and may require an appraisal.