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GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.7 Land and Buildings  >  4.7.6 Gift Annuity, Lead Trust and PIF  >  Basic Quiz

Basic Quiz - 4.7.6 Gift Annuity, Lead Trust and PIF

1. Because of the unmarketable nature of real estate, some charities are reluctant to accept it.
           
2. In order to minimize its financial risk, a charity can suggest a deferred gift annuity when accepting gifts of real estate.
           
3. If an annuitant funds a gift annuity with real estate that is long-term capital gain property, part of each annuity payment will be taxed as capital gain until the annuitant passes away.
           
4. When a donor funds an annuity with appreciated real estate for another person and the donor is not an annuitant, a portion of the capital gain must be reported in the year the gift annuity is funded.
           
5. If a gift annuity is funded with appreciated real estate and the donor does not know the cost basis, he or she can just guess the real estate's cost basis.
           
6. Lead trusts are an excellent way to transfer real estate to family at a reduced gift and estate tax cost.
           
7. With a living lead trust, there is no step up in basis of the trust assets.
           
8. With a testamentary lead trust, there is no step up in basis of the trust assets.
           
9. Real estate is generally not recommended for a pooled income fund (PIF).
           
10. A PIF is a fund where all the income beneficiaries share the income equally, i.e., pooling of income.