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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.9 Revocable Trust  >  3.9.3 Disclosure RT - SEC Exemption  >  Basic Quiz

Basic Quiz - 3.9.3 Disclosure RT - SEC Exemption

1. The Philanthropy Protection Act of 1995 was enacted solely to protect the charitable interest in charitable remainder trusts and pooled income funds.
           
2. The Philanthropy Protection Act of 1995 imposes requirements upon charities similar to those of investment companies.
           
3. The Philanthropy Protection Act of 1995 requires that charities provide certain disclosures to donors that contribute to their funds.
           
4. The Philanthropy Protection Act only applies to trustees of revocable trusts when they are pooling or commingling funds from the various trusts.
           
5. Disclosure to a donor regarding the charitable fund should describe the material terms of the operation of such fund.
           
6. The required disclosure statement can be accomplished by a letter to donors of revocable trusts, which generally can be drafted by the planned giving officer.
           
7. In the disclosure statement to donors, it is recommended that the charity describe fees associated with the fund.
           
8. A charity may not serve as trustee of a revocable trust because of the inherent conflict of interest.
           
9. A revocable trust may allow the donor to receive all of the trust income; however, the donor may not invade principal for any reason.
           
10. At death of the grantor, the remaining trust corpus may be distributed to the one or more named qualified charities. This distribution will entitle the estate to a charitable estate tax deduction.