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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.4 Gift Annuity Applications  >  3.4.7 Unitrust to Gift Annuity Rollover  >  Basic Quiz

Basic Quiz - 3.4.7 Unitrust to Gift Annuity Rollover

1. As a general rule, gifts of partial interests in property do not qualify for a charitable income tax deduction.
           
2. The transfer of a unitrust income stream for a gift annuity is an excellent option for donors who desire another income tax deduction now and a fixed, rather than variable, income stream.
           
3. In most situations, it is likely that a donor will not receive more income from converting to a charitable gift annuity than if the donor stayed with the unitrust.
           
4. In most cases, a gift annuity funded with a unitrust income stream will pay out some ordinary income and some tax-free income.
           
5. If a donor decides to transfer his or her entire unitrust income interest as an outright gift to charity prior to the donor's death, he or she will be entitled to a charitable income tax deduction for the present value of the unitrust income interest.
           
6. There are no limitations on paying a higher payout rate in a CGA than those established by the American Council on Gift Annuities.
           
7. Gifts of income interests are subject to a deduction limit of up to 60% of the donor's adjusted gross income.
           
8. The gift of a unitrust income interest to charity will require Form 8283 to be filed and may require an appraisal.
           
9. A charitable gift annuity is considered a bargain sale.
           
10. Because a donor is transferring one asset for another (unitrust income interest for gift annuity) the capital gain element of the unitrust income stream is accelerated at the time of the transfer.