CAP CAP Estate Planning & Wealth Transfer

Question 1

Which estate planning tool allows a donor to transfer assets to a trust, receive an annuity payment for a fixed term, and pass remaining assets to heirs with reduced gift tax?

Accepted Answer

Grantor Retained Annuity Trust (GRAT)

Answer

Charitable Remainder Annuity Trust (CRAT)

Answer

Donor Advised Fund (DAF)

Answer

Qualified Personal Residence Trust (QPRT)

Question 2

Under current U.S. law, what is the federal estate tax exemption amount per individual for 2024?

Accepted Answer

$13.61 million

Answer

$5.49 million

Answer

$10.92 million

Answer

$12.92 million

Question 3

A philanthropic advisor recommends a testamentary charitable bequest. Which document is used to make this gift?

Accepted Answer

Last will and testament

Answer

Revocable living trust

Answer

Beneficiary designation form

Answer

Charitable gift annuity agreement

Question 4

Which strategy allows a high-net-worth donor to remove life insurance proceeds from their taxable estate while still funding a charity at death?

Accepted Answer

Irrevocable Life Insurance Trust (ILIT) with charity as beneficiary

Answer

Split-dollar life insurance arrangement

Answer

Whole life policy held personally with charity as beneficiary

Answer

Group term life insurance through employer

Question 5

What is the primary purpose of a 'pour-over will' in an estate plan that includes a revocable living trust?

Accepted Answer

To transfer probate assets into the revocable trust at death

Answer

To distribute assets to heirs outside the trust

Answer

To establish a new charitable fund at death

Answer

To replace the need for beneficiary designations

Question 6

A couple wishes to reduce estate taxes while benefiting a charity. Which technique involves transferring a home to a trust, retaining the right to live there, and donating the remainder interest to charity?

Accepted Answer

Retained Life Estate

Answer

Qualified Personal Residence Trust (QPRT)

Answer

Charitable Remainder Unitrust (CRUT)

Answer

Grantor Lead Trust