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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.2 Bequests  >  3.2.3 Bequests of IRAs and Other IRD Assets  >  Basic Quiz

Basic Quiz - 3.2.3 Bequests of IRAs and Other IRD Assets

1. If a donor transfers an IRA to family at his or her death, the family receives a step up in basis of the IRA.
           
2. An IRA is considered an income in respect of the decedent (IRD) asset.
           
3. Assets such as pension plans, savings bonds and commercial annuities are all considered IRD assets.
           
4. If a donor wishes to make a bequest to charity from his or her estate, using an IRD asset is almost always the best way to make a bequest.
           
5. An IRD asset is typically transferred through the beneficiary designation.
           
6. If an IRD asset is paid to the estate of the donor, the estate may still owe income taxes on that IRD asset even if it is eventually transferred to charity.
           
7. IRD assets are usually taxable as ordinary income when received by a non-charitable beneficiary.
           
8. An IRD asset may be unrelated business taxable income to the charity.
           
9. If a donor lists a charity as the beneficiary of his or her IRA, it will cause the donor to have to take higher required minimum distributions from that IRA.
           
10. The bequest of an IRA to a charity may qualify for an estate tax charitable deduction.