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1. When a donor creates several lead trusts, it is possible to transfer property to both children and grandchildren.

True False

2. If property is transferred to a living lead trust for grandchildren, only the generation-skipping transfer tax will apply, but not gift tax.

True False

3. To achieve an even higher deduction, it is permissible to use a family limited partnership to fund several lead trusts, some of which may pass to grandchildren.

True False

4. When grandparents fund a lead trust for the benefit of their grandchildren, their annual exclusion is available to offset some of the gift tax.

True False

5. When grandparents make gifts of property to grandchildren there is a generation-skipping transfer tax exemption.

True False

6. By using a lead trust, it allows the grandchildren time to mature before inheriting property.

True False

7. It is permissible to have a lead trust pay to a family foundation.

True False

8. When using a lead trust to transfer property, the transfer costs will be less than if no lead trust were used.

True False

9. The generation-skipping transfer tax exemption is not available when using a lead trust.

True False

10. When creating a lead trust for grandchildren, it is typically better to choose a unitrust payout for the lead trust, rather than an annuity trust payout.

True False

Basic Quiz - 3.6.6 Generation-Skipping Transfer Taxes - Lead Trust for Children and Grandchildren