Question

Question 4 of 10

How does creating a charitable remainder trust help family members
financially?
A. It creates a yearly tax-free income.
B. It manages assets not easily divided among beneficiaries.
C. It protects assets from the family's debtors.
D. It lowers taxes owed on assets received from the trust.
SUBMIT

Answer 1

Answer: By donating the assets in-kind to the CRT, you'll preserve the full fair market value of the assets rather than reduce it by large capital gains taxes, allowing more money for the income and charitable beneficiaries.

Step-by-step explanation:

Answer 2

D. It lowers taxes owned on assets received from the trust.

Step-by-step explanation:

I have taken the test and can confirm this to be the answer.