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GiftLaw Pro Home   >  Chapter 6 - Charitable Deduction Methods  >  6.4 Lead Trusts  >  6.4.3 Super Grantor Lead Trust  >  Basic Quiz

Basic Quiz - 6.4.3 Super Grantor Lead Trust

1. A super grantor lead trust is designed to lessen the impact of estate taxes imposed on the grantor's estate.
           
2. The creator of a super grantor lead trust may not retain control over the income or the reversionary interest.
           
3. The grantor cannot retain any type of control in a super grantor lead trust.
           
4. The grantor should retain the right to control allocation among beneficiaries in order to qualify the trust as a super grantor lead trust.
           
5. Any gain recognized by a super grantor lead trust must be reported on the charity's tax return.
           
6. A super grantor lead trust qualifies the grantor for a charitable income tax deduction.
           
7. Payments made to the charitable beneficiary must be reported on the grantor's income tax return.
           
8. It is not permissible to create a super grantor lead trust for the lesser of a life or term of years.
           
9. The grantor's charitable income tax deduction is equal to the present value of the payments from the trust.
           
10. Karl creates a super grantor lead trust and retains the right to control income distribution. The trust value will not be artificially included in Karl's estate.