Question

Which of the following is not a benefit of a charitable remainder trust?

a. It acts as a form of life insurance that benefits the grantor's children at death.
b. It reduces income tax.
c. It increases current income by providing life income for the grantor.
d. It reduces federal estate tax

Answer 1

A charitable remainder trust provides various benefits, but it does not act as a form of life insurance that benefits the grantor's children at death.

Step-by-step explanation:

A charitable remainder trust is a type of trust that allows an individual to donate assets to a charity while still being able to receive income from those assets during their lifetime.

It offers several benefits, such as reducing income tax, increasing current income for the grantor, and reducing federal estate tax. However, it does not act as a form of life insurance that benefits the grantor's children at death.