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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.11 Unitrust Applications  >  3.11.2 Retirement/FLIP Unitrust  >  Basic Quiz

Basic Quiz - 3.11.2 Retirement/FLIP Unitrust

1. A retirement unitrust and a FLIP unitrust are identical trusts that just are referred to by different marketing names.
           
2. Program 40, the one to eight lives unitrust program, includes trust documents for all four types of unitrust options.
           
3. A retirement unitrust and a net plus makeup unitrust are identical trusts that are referred to by different marketing names.
           
4. Because a retirement unitrust can make unitrust payments from principal if needed, trustees can invest for growth, with little concern for the production of income.
           
5. Based upon the same assumptions, the charitable income tax deduction for a straight unitrust, a retirement unitrust, and a FLIP unitrust are always going to be the same.
           
6. One advantage a FLIP trust has over a retirement unitrust is that when the trust flips it will produce the steady payout of a Type I or standard unitrust.
           
7. One major advantage a retirement unitrust has over a FLIP unitrust is its ability to make makeup payments.
           
8. A retirement unitrust is a trust that is allowed to pay different payout percentages each year depending on how the trust is drafted.
           
9. The goal of many trustees of retirement unitrusts is to invest the trust assets so that most of the unitrust payout will be characterized as capital gain type income.
           
10. There is never a valid reason to select a lower unitrust payout percent when a higher payout percent can be chosen and still pass the 10% minimum deduction interest test.