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GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.2 C Corporations  >  4.2.5 Charitable Unitrust Bailout  >  Basic Quiz

Basic Quiz - 4.2.5 Charitable Unitrust Bailout

1. When the founder of a family business retires, the business in nearly all cases is sold to an outside party or goes out of business.
           
2. An excellent inheritance plan involves the transfer of non-voting stock and minority interests in a company to children who are not involved with the company.
           
3. Parents usually have three goals in contemplating the transition out of their family business: secure retirement income, smooth business succession and a fair inheritance plan.
           
4. A business owner who transfers his or her stock into a CRT is prohibited from repurchasing the stock from the CRT pursuant to the self-dealing rules.
           
5. It is an act of self-dealing when a donor's corporation redeems shares from the donor's charitable remainder trust.
           
6. If a donor wants to claim a charitable income tax deduction, each transfer of the donor's corporate stock must be substantiated by a qualified appraisal.
           
7. It is common for parents to transfer non-voting common stock to their children and retain voting common stock for themselves.
           
8. A net income plus makeup unitrust (NIMCRUT) is an excellent option for business owners who desire charitable deductions now, but who do not wish to increase their income now.
           
9. A FLIP unitrust's trigger event may be the retirement of the business owner.
           
10. The double discount lead trust involves using both a family limited partnership (FLP) and a charitable lead annuity trust (CLAT).