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GiftLaw Pro Home   >  Chapter 1 - Taxation and Giving  >  1.2 Gift Tax Deductions  >  1.2.2 Annual Exclusion  >  Basic Quiz

Basic Quiz - 1.2.2 Annual Exclusion

1. The annual gift tax exclusion is available each year per donor-per donee.
           
2. There is an unlimited gift tax exclusion for tuition paid directly to educational institutions.
           
3. There are unlimited gift tax exclusions for payments made directly to health care providers.
           
4. A donor may apply the annual gift tax exclusion to a deferred payment charitable gift annuity created solely for another person.
           
5. A donor may apply the annual gift tax exclusion to a charitable remainder unitrust, annuity trust or current gift annuity.
           
6. A net plus makeup unitrust does not qualify for the annual gift tax exclusion because it is possible that no income payments will be made in the first year.
           
7. Transfers to a Sec. 2503(c) trust or gifts in accordance with the Uniform Transfers to Minors Act (UTMA) will qualify for the annual gift tax exclusion.
           
8. Sec. 529 plans and qualified state tuition plans are an excellent way to make contributions to your favorite charity.
           
9. Transfers into an irrevocable trust for the benefit of children or others can qualify for the annual gift tax exclusion through use of a "Crummey" power.
           
10. "Crummey" powers are commonly used to fund irrevocable life insurance trusts, also known as wealth replacement plans.