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1. All types of trusts may own S corporation stock.

True False

2. Many types of lead trusts may own S corporation stock.

True False

3. Lead trusts are an excellent way to transfer property to family at a reduced transfer tax cost.

True False

4. The 10% minimum deduction interest test does not apply to lead trusts.

True False

5. The lower the Applicable Federal Rate, the higher the deduction with a charitable remainder lead trust.

True False

6. A lead trust is a tax-exempt trust.

True False

7. A non-grantor lead trust with remainder passing to family produces an income tax deduction.

True False

8. Grantor lead trusts usually produce an estate tax deduction.

True False

9. The trust, not the donor, is taxable on the income earned by the grantor lead trust.

True False

10. A non-grantor lead trust that owns S corporation stock must be an electing small business trust.

True False

Basic Quiz - 4.14.9 Sub S Lead Trust