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1. A pooled income fund may be drafted for a term of years.

True False

2. A private foundation may be the charitable remainder recipient of a pooled income fund.

True False

3. Under the four-tier accounting structure, it is possible to receive tax-free income from a pooled income fund if there is no tier-one or tier-two type income.

True False

4. A donor may transfer appreciated stock or tax-free funds into a pooled income fund.

True False

5. A pooled income fund is a fund where all the income beneficiaries share equally the income, i.e. pooling of income.

True False

6. Similar to charitable remainder trusts, a donor or income beneficiary may be a trustee of the pooled income fund.

True False

7. As a general rule, a pooled income fund may not be created for a donor under the age of 35 because of the 10% minimum deduction interest test.

True False

8. A testamentary power of revocation is not applicable to pooled income funds.

True False

9. A donor may receive a charitable income tax deduction for a gift to a pooled income fund equal to the present value of the income interest.

True False

10. A pooled income fund must be maintained and operated by the donor or a corporate trustee.

True False

Basic Quiz - 3.8.1 Pooled Income Fund (PIF) Requirements