Drew, 72, is a widower with a gross estate worth $975,000. He is in the highest current marginal income tax bracket. Drew would like to make a sizable charitable contribution to the American Diabetes Association, and would like the charitable contribution to provide him with a fixed income for the rest of his life. Which one of the following charitable transfers is most appropriate for Drew to use to best achieve his estate planning objective? A)A charitable outright gift, since it reduces Drew's income tax liability substantially B)A charitable lead trust, since it provides Drew with a fixed income stream C)A charitable remainder annuity trust, since it provides the desired income to Drew D)A charitable remainder unitrust, since it provides Drew with a charitable contribution deduction
Drew, 72, is a widower with a gross estate worth $975,000. He is in the highest current marginal income tax bracket. Drew would like to make a sizable charitable contribution to the American Diabetes Association, and would like the charitable contribution to provide him with a fixed income for the rest of his life. Which one of the following charitable transfers is most appropriate for Drew to use to best achieve his estate planning objective? A)A charitable outright gift, since it reduces Drew's income tax liability substantially B)A charitable lead trust, since it provides Drew with a fixed income stream C)A charitable remainder annuity trust, since it provides the desired income to Drew D)A charitable remainder unitrust, since it provides Drew with a charitable contribution deduction
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Drew, 72, is a widower with a gross estate worth $975,000. He is in the highest current marginal income tax bracket. Drew would like to make a sizable charitable contribution to the American Diabetes Association, and would like the charitable contribution to provide him with a fixed income for the rest of his life.
Which one of the following charitable transfers is most appropriate for Drew to use to best achieve his estate planning objective?
A)A charitable outright gift, since it reduces Drew's income tax liability substantially
B)A charitable lead trust, since it provides Drew with a fixed income stream
C)A charitable remainder annuity trust, since it provides the desired income to Drew
D)A charitable remainder unitrust, since it provides Drew with a charitable contribution deduction
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