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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.1 Annuity Remainder Trust  >  3.1.8 Charitable Remainder Annuity Trust Reformations  >  Basic Quiz

Basic Quiz - 3.1.8 Charitable Remainder Annuity Trust Reformations

1. Once a charitable remainder trust document is created and funded, it is not possible to make a change to the trust document.
           
2. The reformation rules allow for trusts to be reformed when they follow the general annuity trust format but have one of two specific types of errors.
           
3. If a charitable remainder trust is established and does not have the necessary charitable remainder trust language, but states a specific dollar amount to be paid to a noncharitable beneficiary and the remainder to charity, it may be possible to reform this trust to qualify under Sec. 664.
           
4. If a trust is to be reformed under the "intent to comply" provisions, the reformation must occur within two years of trust creation.
           
5. If a testamentary trust is created that pays all of its income to a non-charitable beneficiary with remainder to charity, but does not have the other required charitable remainder trust language, it will still be allowed a deduction because the remainder is paid to a charity.
           
6. If a testamentary trust is not properly drafted it must be reformed, if possible, within 90 days of the testator's death.
           
7. If a trust is reformed so that it qualifies as a charitable remainder trust, a charitable deduction will be allowed.
           
8. Any trust that has a provision for charity will qualify as a charitable remainder trust.
           
9. Trust reformation can take place by simply having the trustee amend the trust document.
           
10. A reformed trust document must have the appropriate charitable remainder trust language.