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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.6 Lead Trust Applications  >  3.6.4 Tandem Trusts  >  Basic Quiz

Basic Quiz - 3.6.4 Tandem Trusts

1. Establishing tandem trusts allows for both an income stream to beneficiaries and a distribution of principal to beneficiaries.
           
2. A tandem trust plan involves both a charitable remainder trust and a charitable lead trust.
           
3. A tandem trust term can last as long as the donor chooses.
           
4. In a tandem trust plan, it is better to fund the testamentary lead trust with an IRA or other IRD assets and the testamentary CRT with appreciated land or stock.
           
5. With a tandem trust plan, it is permissible to use the highest Applicable Federal Rate for the CRT and the lowest Applicable Federal Rate for the lead trust.
           
6. In a tandem trust plan, both the lead trust and the charitable remainder trust are for a term of years.
           
7. The testamentary CRT and the testamentary lead trust are typically funded through the donor's will or living trust.
           
8. At the end of the CRT and lead trust, the lead trust principal is distributed to charity while the CRT corpus is distributed to other heirs.
           
9. The CRT and lead trust must have the same payout percentages in a tandem trust plan.
           
10. Both the CRT and the lead trust need to pass the 10% minimum deduction test.