Skip to Main Content
GiftLaw Pro
Charitable Giving & Tax Information Service
Back to Gift Planning Website
GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.5 Lead Trust  >  3.5.3 Super Grantor Lead Trust  >  Basic Quiz

Basic Quiz - 3.5.3 Super Grantor Lead Trust

1. A super grantor lead trust allows for an income tax deduction.
           
2. A super grantor lead trust provides for a gift tax deduction.
           
3. The trust remainder reverts to the grantor with a super grantor lead trust.
           
4. The trust is taxable on the income earned in a super grantor lead trust.
           
5. If a super grantor lead trust is properly established, it will be included in the grantor's estate.
           
6. Typically, the power retained in a grantor lead trust to make it a super grantor lead trust is the power to reacquire assets held by a nonadverse party.
           
7. The power to reacquire assets held by a non-adverse party is usually held by a brother, sister or another non-adverse, but friendly, party to the donor.
           
8. With a super grantor lead trust, if the donor wants to pay the least amount of gift taxes, the highest Applicable Federal Rate should be used.
           
9. The gift tax deduction and the income tax deduction are always different amounts with a super grantor lead trust.
           
10. If the donor is in the highest income tax bracket and would like to transfer property to family, a super grantor lead trust is a good gift planning idea.