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1. The gift of a remainder interest must be accomplished by the creation of a trust and the transfer of a deed into that trust.

True False

2. A donor who owns her home outright may not receive a charitable income tax deduction for the transfer of a remainder interest in her residence.

True False

3. A gift of a remainder interest in a personal residence or farm is not recognized for estate tax charitable purposes.

True False

4. A donor may retain an interest for a term of years, rather than a life estate, in a home or farm.

True False

5. A personal residence is defined as the principal residence owned and used by the individual in two of the past five years.

True False

6. If a life estate arrangement is created for the donor and another person, the transfer may be subject to gift tax.

True False

7. A qualified personal residence trust (QPRT) is the vehicle by which a donor may transfer the remainder interest in a home to charity.

True False

8. A person may transfer up to three residences into a QPRT.

True False

9. The two primary benefits a QPRT provides are a charitable income tax deduction and a bypass of capital gains.

True False

10. If the creators of a QPRT fail to outlive the term of years, the residence will be included in their estate.

True False

Basic Quiz - 3.7.5 Life Estate vs. Qualified Personal Residence Trust (QPRT)