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GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.13 Stock Options  >  4.13.4 Testamentary CRT  >  Basic Quiz

Basic Quiz - 4.13.4 Testamentary CRT

1. An excellent planning strategy is for an employee to transfer stock options to a testamentary charitable remainder trust.
           
2. Stock options, pension plans, savings bonds and commercial annuities are examples of IRD assets.
           
3. If a decedent leaves stock options to his or her family at death, the family receives a step up in basis on the stock options.
           
4. An employee's company plan may impose restrictions on the transferability of stock options.
           
5. A bequest of stock options to charity produces no income or estate tax liability.
           
6. A donor may list the CRT trustee on his or her stock options' beneficiary designation form.
           
7. Income in respect of a decedent (IRD) is generally the result of assets that have untaxed ordinary income or capital gain at the time of the decedent's death.
           
8. An employee during life may transfer an ISO to charity or a planned gift.
           
9. The IRD asset is a passive asset and generates no UBTI to the CRT.
           
10. After funding a testamentary charitable remainder trust with stock options, it is likely that the income beneficiary will receive mostly tax-free income from the trust.