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GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.13 Stock Options  >  4.13.3 Bequest of Options  >  Basic Quiz

Basic Quiz - 4.13.3 Bequest of Options

1. Stock options, pension plans, savings bonds and commercial annuities are examples of IRD assets.
           
2. Stock options are an excellent asset to bequeath to charity.
           
3. If a decedent leaves stock options to his or her family at death, the family receives a step up in basis on the stock options.
           
4. An employee's company plan may impose restrictions on the transferability of stock options.
           
5. A bequest of stock options to charity produces no income or estate tax liability.
           
6. A donor may list charity on his or her stock options' beneficiary designation form.
           
7. While ISOs may not be transferred during life, an employee may transfer his or her ISO at death.
           
8. Income in respect of a decedent (IRD) is generally the result of assets that have untaxed ordinary income or capital gain at the time of the decedent's death.
           
9. An excellent planning strategy is for an employee to transfer stock options to a testamentary charitable remainder trust.
           
10. After funding a testamentary charitable remainder trust with stock options, it is likely that the income beneficiary will receive mostly tax-free income from the trust.