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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.2 Bequests  >  3.2.2 Estate Tax Deductions  >  Basic Quiz

Basic Quiz - 3.2.2 Estate Tax Deductions

1. If a donor leaves a bequest to a non-qualified charity from his or her estate, the estate will qualify for an estate tax charitable deduction.
           
2. Gifts to a foreign charity are not eligible for an estate tax deduction.
           
3. Gifts during life to a foreign charity are not eligible for an income tax deduction.
           
4. If an estate is to receive a deduction for a gift to charity, the charity must have a vested right in that gift.
           
5. If a testator wishes to leave a bequest to charity, the drafting of the bequest language is very important to ensure that the estate receives an estate tax charitable deduction.
           
6. If an estate is taxable at a 40% rate, a bequest of $100,000 costs the donor only $60,000.
           
7. If a donor creates a charitable remainder trust for his or her life, at the donor's death, the trust corpus is included in the estate, but the estate receives a 100% charitable tax deduction for the value of the trust corpus.
           
8. An estate tax deduction reduces the estate tax by the same dollar amount as the deduction.
           
9. Estate tax deductions are allowable for any gift from the estate to charity.
           
10. If a donor, through a beneficiary designation, leaves an IRA or qualified retirement plan to charity, that IRA or qualified pension plan will not be subject to income or estate taxes.