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1. A unitrust may be created for a term of years.

True False

2. It is permissible to create a unitrust for a term of 25 years.

True False

3. It is permissible for the trustee to "sprinkle" income payments among a class of beneficiaries.

True False

4. A charity may be the sole income beneficiary of a term of years unitrust.

True False

5. The donor receives a charitable tax deduction for the value of the remainder interest in a term of years unitrust.

True False

6. The charitable income tax deduction must be calculated using the applicable federal rate (AFR) for the month the trust was created.

True False

7. Sec. 561 sets forth the method for determining the charitable deduction for a term of years unitrust.

True False

8. The lower the AFR, the higher the charitable deduction for a term of years unitrust.

True False

9. It is possible to create a term of years unitrust for a class of beneficiaries.

True False

10. The beneficiary's age is used to determine the amount of the donor's charitable income tax deduction in a term of years unitrust.

True False

Basic Quiz - 6.7.2 Term of Years Unitrust