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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.4 Gift Annuity Applications  >  3.4.6 IRA to Testamentary Gift Annuity  >  Basic Quiz

Basic Quiz - 3.4.6 IRA to Testamentary Gift Annuity

1. Beneficiaries do not pay income tax when they receive a decedent's IRA.
           
2. The most effective way to leave an IRA to a testamentary charitable gift annuity is to make sure that a provision in the will directs that the IRA pass to the appropriate charity.
           
3. Naming a charity, a charitable remainder trust or a charitable gift annuity as the beneficiary of an IRA causes the minimum required distributions to be increased during the donor's lifetime because a charity is not an individual with a life expectancy.
           
4. An IRA to testamentary gift annuity can provide some very nice advantages when compared to an IRA to testamentary unitrust.
           
5. Using an IRA to fund a testamentary gift annuity for a surviving spouse is an estate tax-free transfer.
           
6. An IRA that passes to a testamentary gift annuity to benefit children or siblings is not subject to estate tax because a charity is the ultimate beneficiary of the IRA.
           
7. After an IRA is transferred in exchange for a testamentary gift annuity, the estate will nevertheless have to realize and pay income tax on the IRA because it is an IRD asset (income with respect of a decedent).
           
8. In most cases, a testamentary gift annuity funded with an IRA will pay out some ordinary income and some tax-free income.
           
9. A gift annuity must have a minimum charitable value of 10%.
           
10. An IRA to testamentary deferred charitable gift annuity may provide many of the same positive benefits that an IRA to testamentary charitable gift annuity furnishes.