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GiftLaw Pro Home   >  Chapter 6 - Charitable Deduction Methods  >  6.4 Lead Trusts  >  6.4.2 Living Family Lead Trust  >  Basic Quiz

Basic Quiz - 6.4.2 Living Family Lead Trust

1. A living family lead trust is a charitable lead trust (CLT) in which the donor gives his or her family an income interest in the trust.
           
2. The donor retains an interest for him- or herself in a living family lead trust.
           
3. A CLT must be created as a unitrust.
           
4. To increase a donor's charitable gift tax deduction for a CLT, it is best to use the lowest applicable federal rate (AFR).
           
5. An EZ lead trust is a CLT created for the greater of a life or a term of years.
           
6. An EZ CLT cannot be created for the lesser of two lives or a term of years.
           
7. A lead trust for the lesser of a life or a term of years is tax-exempt.
           
8. No time adjustment factor is necessary for annuity trusts paying out other than monthly.
           
9. The donor's charitable deduction is equal to the present value of the income stream to charity.
           
10. With a lesser of life or term of years CLT, the charitable deduction is slightly decreased because there is a possibility that the person with the measuring life will pass away before the selected term of years.