1. What is the best definition of the term "planned gift"?
A. It is the concept of planning ahead and making a gift in your will.
B. It is an asset being given in return for tax reductions.
C. It is the donation of an asset in exchange for an income, usually provided after the asset is put into a charitable trust.
D. It is the idea of making a gift to a charitable organization before death.

2. Generally, planned gifts fall into one of three groups. Which of the below is one of these groups?
A. single outright lifetime transfer or series of annual gifts
B. revocable arrangements for a future gift
C. irrevocable provisions for a deferred gift
D. all of the above

3. One example of an outright lifetime gift is
A. long-term appreciated and readily marketable property.
B. a bequest in a will.
C. a gift of life insurance.
D. a gift of cash.

4. Life insurance is a good example of a revocable arrangement for future gifts because death benefits for charity reduce a taxable estate, pass contractually outside of probate and are less subject to contest than bequests BUT the gift does involve some administrative expense or settlement costs. True or False.

5. As an irrevocable provision for future gifts, split-interest charitable remainder trusts provide donors the greatest tax advantages. Which of the below is not one of these advantages?
A. an immediate tax deduction
B. future tax deduction
C. avoidance of capital gains tax
D. increased lifetime income

6. If one of your financial objectives is to avoid the tax on capital gains, the best gift might be
A. to contribute appreciated stock that you have held for at least a year.
B. to make a bequest in your will.
C. to give a gift of real estate that you no longer have a use for.
D. to create a charitable gift annuity.

7. If one of your financial objectives is to help put grandchildren through college, the best gift might be
A. to provide a gift in your will that will provide money for a college education.
B. to create a savings account when the children are born and add to it on a regular basis.
C. to set up a charitable remainder trust, with the benefits going to the grandchild.
D. to create an education unitrust, making payments to a grandchild for tuition costs.

8. If you have special possessions suitable for a favorite organization's retention and use, you should donate a valuable collection or other tangible objects. True or False

9. Other than cash, the simplest and most frequently used alternative gift is
A. a gift of retirement plan assets
B. a gift of long-term appreciated and readily marketable property, such as stock and real property.
C. a gift of life insurance
D. all of the above

10. You should consider making a planned gift if
A. You're interested in furthering an organization's mission
B. You're interested in reducing taxes
C. You're interested in possibly increasing your income
D. all of the abov
(Answers below)

Answers

1. C
2. D
3. A
4. False. The gift does not involve administrative expense or settlement costs.
5. B
6. A
7. D
8. True
9. B
10. D

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