Lesson Four Quiz:

Click on your response for the correct answer.

5. A revocable living trust may be most attractive to:

A. people who have small estates Please try again.

B. people who own real estate in several different states Congratulations, correct answer.

C. people whose property is held entirely in joint ownership Please try again.

6. The minimum payment from a charitable remainder trust is

A. 3% Please try again.

B. 5% Congratulations, correct answer.

C. 7% Please try again.

7. Income tax charitable deductions are available for lifetime gifts from:

A. revocable living trusts Congratulations, correct answer.

B. irrevocable life insurance trusts Please try again.

C. both A and B Please try again.

8. The word “bypass” in “bypass trust” means that:

A. any trust income bypasses income tax Please try again.

B. the trust bypasses probate at your death Please try again.

C. trust assets bypass estate tax at the beneficiary’s death Congratulations, correct answer.

9. When a trust ends, the assets are transferred to:

A. income beneficiaries Please try again.

B. a trustee Please try again.

C. remainder beneficiaries Congratulations, correct answer.

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