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GiftLaw Pro Home   >  Chapter 8 - Gift Administration  >  8.2 Charitable Remainder Trusts  >  8.2.1 State Regulations - The Administration  >  Basic Quiz

Basic Quiz - 8.2.1 State Regulations - The Administration

1. Charitable remainder trusts (CRTs) must pay a minimum of 5% of the trust's value at least annually.
           
2. A CRT must produce a charitable deduction of at least 15 % of the initial funding amount.
           
3. If quarterly payments are made from a CRT, the trust must be revalued every three months.
           
4. Charitable remainder trusts must function exclusively as a charitable remainder trust, and never as a grantor trust.
           
5. If the trustee of a CRT makes an overpayment to a beneficiary, the beneficiary may keep the excess over the correct payment amount.
           
6. An income beneficiary of a CRT may report the payments in the year in which each payment is to be made.
           
7. A CRT is not permitted to distribute actual trust property to an income beneficiary.
           
8. In-kind distributions from a trust are treated as a sale from the trust for accounting purposes.
           
9. If an income beneficiary accepts an in-kind distribution from a CRT, the payment is not subject to taxation.
           
10. Some of the same restrictions and requirements applicable to private foundations also apply to CRTs.