Skip to Main Content
GiftLaw Pro
Charitable Giving & Tax Information Service
Back to Gift Planning Website
GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.12 Stock  >  4.12.3 Gifts of Family Stock  >  Basic Quiz

Basic Quiz - 4.12.3 Gifts of Family Stock

1. In valuing gifts to children, the incentive is to set a low value.
           
2. In valuing gifts to charity, the incentive is to set a low value.
           
3. An independent appraisal of family business stock is necessary to determine the value of the stock before it is given to children or charity if the stock is not traded on a public exchange.
           
4. Giving family business stock to charity and children at the same time helps protect a donor from challenges that the stock was incorrectly valued.
           
5. Self-dealing rules apply to transactions between a donor and a public charity.
           
6. Self-dealing rules apply to transactions between a donor and a charitable remainder trust.
           
7. A public charity can sell family business stock back to a donor or his or her family members at a low value.
           
8. It is possible for a corporation to buy its own stock from a charitable remainder trust created by the corporation's owner.
           
9. A charitable remainder trust may sell its stock to a purchaser in exchange for a promissory note.
           
10. A charitable remainder trust may hold family business stock as its only investment.