Charitable Remainder Annuity Trust Exam questions with correct answers

Charitable Remainder Annuity Trust
(CRAT) vs Charitable Remainder
Unitrusts (CRUT)



Trust pays a contributor a set income per year, based upon an agreed-to percentage of
the fair market value of the donated assets at the time the Trust is established.answer-
Charitable Remainder Annuity Trust "CRAT"

Appropriate for anyone who is asset rich but cash poor, i.e. an individual who owns
appreciated assets that are yielding little or no income at a time when he/she needs
increased income for retirement or other needs.answer- Charitable Remainder Annuity
Trust "CRAT"

valuable estate-planning tool for any contributor who needs an immediate income tax
deduction, but also needs to retain a level income stream for retirement.answer-
Charitable Remainder Annuity Trust "CRAT"

Can be used to delay distributions to beneficiaries until they reach a certain age or meet
other criteria.answer- Charitable Remainder Annuity Trust "CRAT"

Generates income from under-producing appreciated assets. Payout rate may well
exceed dividends, rental fees or other potential revenues from the assets.answer-
Charitable Remainder Annuity Trust "CRAT"

Can provide income for another as well as for yourself - a spouse, parent, child, etc.
Income can be paid to you for life and then to another family member, or for a specified
period of years.answer- Charitable Remainder Annuity Trust "CRAT"

Provides income that is taxed at lower overall rates than ordinary income-tax
rates.answer- Charitable Remainder Annuity Trust "CRAT"

Reduces income taxes. A portion of the appreciated asset donation is income tax
deductible, even though a portion of the annual payouts themselves may be
taxable.answer- Charitable Remainder Annuity Trust "CRAT"