Trust Planning for Children and UGMA/UTMA Transfers

Crummey Trusts

Section 2503(c) Trust

Uniform Gift to Minors Act

Uniform Transfer to Minors Act (correct)

The trust must be created for the benefit of a single skip person and must be vested in that single beneficiary for estate tax purposes. (correct)

The trust must be created for the benefit of multiple beneficiaries and must be vested in those beneficiaries for estate tax purposes.

The trust must be created for the benefit of a single skip person and must be vested in that single beneficiary for income tax purposes.

The trust must be created for the benefit of multiple beneficiaries and must be vested in those beneficiaries for income tax purposes.

To remove life insurance policies from a client's taxable estate (correct)

To provide a tax deduction for life insurance premiums

To avoid paying taxes on the life insurance proceeds

To allow the client to change the beneficiaries of the life insurance policy at any time

<p>The insured must live for 3 years after the transfer for the policy to be excluded from their estate.</p> Signup and view all the answers

<p>A power of withdrawal that creates a present interest in a trust.</p> Signup and view all the answers

<p>To prevent the lapse of an unused portion of a Crummey power.</p> Signup and view all the answers

<p>To provide liquidity to pay estate taxes or other expenses at the second death.</p> Signup and view all the answers