Which of the following are correct statements about the nontax characteristics of a charitable lead trust? The income stream must be paid for the lifetime of the beneficiary. The grantor of the trust receives a charitable income tax deduction in the year the trust is funded. The trust must distribute the remainder interest in the corpus to a noncharitable beneficiary. The trust must distribute the remainder interest in the corpus to a charitable beneficiary. A) I and IV B) I and II C) II and III D) II and IV
Which of the following are correct statements about the nontax characteristics of a charitable lead trust? The income stream must be paid for the lifetime of the beneficiary. The grantor of the trust receives a charitable income tax deduction in the year the trust is funded. The trust must distribute the remainder interest in the corpus to a noncharitable beneficiary. The trust must distribute the remainder interest in the corpus to a charitable beneficiary. A) I and IV B) I and II C) II and III D) II and IV
Chapter28: Income Taxation Of Trusts And Estates
Section: Chapter Questions
Problem 26P
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Which of the following are correct statements about the nontax characteristics of a charitable lead trust?
- The income stream must be paid for the lifetime of the beneficiary.
- The grantor of the trust receives a charitable income tax deduction in the year the trust is funded.
- The trust must distribute the remainder interest in the corpus to a noncharitable beneficiary.
- The trust must distribute the remainder interest in the corpus to a charitable beneficiary.
A)
I and IV
B)
I and II
C)
II and III
D)
II and IV
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