Question ID: 1251900 All of the following statements regarding charitable remainder annuity trusts (CRATs) and charitable remainder unitrusts (CRUTs) are CORRECT except A) the remainder beneficiary is a charity. B) the annual payout to an income beneficiary may not exceed 50% of the value of the trust. C) the remainder interest at inception must be greater than or equal to 10% of the original value of the property transferred to the trust. D) they may be established as revocable trusts.
Question ID: 1251900 All of the following statements regarding charitable remainder annuity trusts (CRATs) and charitable remainder unitrusts (CRUTs) are CORRECT except A) the remainder beneficiary is a charity. B) the annual payout to an income beneficiary may not exceed 50% of the value of the trust. C) the remainder interest at inception must be greater than or equal to 10% of the original value of the property transferred to the trust. D) they may be established as revocable trusts.
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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Question #82 of 85
Question ID: 1251900
All of the following statements regarding charitable remainder
A)
the remainder beneficiary is a charity.
B)
the annual payout to an income beneficiary may not exceed 50% of the value of the trust.
C)
the remainder interest at inception must be greater than or equal to 10% of the original value of the property transferred to the trust.
D)
they may be established as revocable trusts.
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