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. The longer the lead trust duration, the higher the deduction.

True False

2. A large enough charitable deduction will allow the donor to pass property to others with little or no transfer taxes.

True False

3. It is possible for the donor to create several lead trusts that terminate at different times.

True False

4. Each lead trust must have a minimum 5% payout.

True False

5. Each lead trust must be funded with the same amount.

True False

6. When creating several lead trusts, it is possible to have one or more lead trusts pass to grandchildren.

True False

7. With a lead trust, it is always better to use the highest applicable federal rate to receive the largest tax deduction.

True False

8. Donors typically do not want their heirs to have to wait too long before receiving the property from the lead trust.

True False

9. The larger the payout to charity from the lead trust, the higher the deduction.

True False

10. It is possible to use a family limited partnership to fund one or more of the lead trusts and receive a double discount on the transfer.

True False

Basic Quiz - 3.6.5 Layered Lead Trusts