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GiftLaw Pro Home   >  Chapter 8 - Gift Administration  >  8.2 Charitable Remainder Trusts  >  8.2.4 Trust Investments  >  Basic Quiz

Basic Quiz - 8.2.4 Trust Investments

1. Charitable remainder trusts may not hold a life insurance policy as an investment.
           
2. A "conservative portfolio" typically consists of 70% bonds and 30% equities.
           
3. The IRS has rules prohibiting charitable remainder trusts from investing in junk bonds.
           
4. One hundred basis points is the equivalent of 1%.
           
5. It is important to minimize investment fees and costs with lower return rates.
           
6. UPIA stands for the "United Property Investment Act."
           
7. 100 basis points is a common fee for a private trustee and investment advisor.
           
8. Four-tier accounting and investment strategy determine the type of income the trust pays to the beneficiary.
           
9. It is acceptable under the UPIA for a trustee to invest only in municipal bonds.
           
10. A charity may serve as a trustee and assist in the investment strategy.