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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.1 Annuity Remainder Trust  >  3.1.7 CRAT Document Requirements  >  Basic Quiz

Basic Quiz - 3.1.7 CRAT Document Requirements

1. The required provisions in a charitable remainder annuity trust document are enumerated in the Internal Revenue Code under Sec. 664.
           
2. In a charitable remainder annuity trust document, it is necessary to specify the term of the annuity be it for a life, lives, or a term of up to 20 years.
           
3. The trust document must state that the remainder will pass to a qualified exempt charity.
           
4. It is permissible to reserve the right to change the charitable remainderman in a CRAT document.
           
5. The donor, in the trust document, can define the permissible trust investments.
           
6. With an annuity trust, it is permissible to have a provision in the trust document that allows for additional contributions to the trust.
           
7. The trust document need not state that there will be pro-rata payment in the first and the last year of the trust.
           
8. The trust document must contain a provision for an independent special trustee.
           
9. It is permissible to state in the trust document that the trust will terminate prior to the beneficiary's life or the selected term of years upon some stated contingency.
           
10. The obligation to pay the annuity amount must terminate with the last payment before the beneficiary's death.