Lesson Five Quiz:

Click on your response for the correct answer.

1. Heirs, other than charities, may owe both income taxes and estate taxes on the following assets:

A. stocks and bonds Please try again.

B. savings bonds and IRAs Congratulations, correct answer.

C. cash Please try again.

2. Charitable trusts established in your estate plan can:

A. pay income to family members for life Please try again.

B. create estate tax and income tax savings Please try again.

C. Both A and B Congratulations, correct answer.

3. To name a charity as an IRA beneficiary you must:

A. ask the custodian for a form Congratulations, correct answer.

B. change your will Please try again.

C. establish a revocable living trust Please try again.

4. Trusts that pay income to charity first and then to heirs are called:

A. charitable remainder trusts Please try again.

B. contingent trusts Please try again.

C. charitable lead trusts Congratulations, correct answer.

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