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1. Even when a donor makes a gift to charity, it is still possible with an insurance trust to preserve a similar value to pass on to family.

True False

2. If done properly, amounts passing to family from an irrevocable life insurance trust (ILIT) are not subject to gift or estate tax.

True False

3. With an irrevocable life insurance trust, the donor may still retain the right to change the beneficiaries of the trust.

True False

4. By using the gift and insurance trust plan, it is possible to reduce the value of the estate, benefit charity and provide for family.

True False

5. The Crummey power can be used when funding an insurance trust to reduce or eliminate the gift tax.

True False

6. If a donor decides to implement a gift plus insurance plan, it is advisable for the donor to fund the insurance trust first and then make the gift to charity.

True False

7. A life insurance trust is usually funded with a term life insurance policy.

True False

8. If one spouse is uninsurable, it is impossible to use a life insurance trust.

True False

9. Once an irrevocable life insurance trust is established, it is permissible for the donor to borrow against the life insurance policy.

True False

10. The annual exclusion is not allowable for contingent life insurance trust beneficiaries.

True False

Basic Quiz - 2.3.2 Gift and Insurance Trust