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GiftLaw Pro Home   >  Chapter 6 - Charitable Deduction Methods  >  6.3 Gift Annuities  >  6.3.2 Deferred Gift Annuity  >  Basic Quiz

Basic Quiz - 6.3.2 Deferred Gift Annuity

1. A current gift annuity and a deferred gift annuity funded with the same amount will not produce the same charitable deduction.
           
2. The charitable deduction for a deferred gift annuity is adjusted for the deferral period.
           
3. The annuity starting date is defined as one period after the funding date.
           
4. The annuity funding date is used to determine the exclusion ratio.
           
5. The highest AFR is preferable for an annuitant who desires greater tax-free payments.
           
6. Life expectancies for deferred gift annuities are determined by referring to the IRS mortality tables.
           
7. If an annuity is funded with appreciated stock, the payments will consist of capital gain, tax-free return of basis, and ordinary income.
           
8. Jared creates a one-life deferred gift annuity. Jared receives a portion of each payment tax-free for the term of years he is expected to live. Jared is extremely healthy and has lived past his life expectancy. Jared's payments will continue to contain a tax-free element.
           
9. Until the end of the term or the death of the annuitant, a portion of each annuity payment is a return of principal.
           
10. Deferred annuities produce a charitable deduction usable up to 50% of the donor's adjusted gross income (AGI).