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GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.1 Art Gifts and Valuation  >  4.1.4 Art to Charitable Remainder Trusts  >  Basic Quiz

Basic Quiz - 4.1.4 Art to Charitable Remainder Trusts

1. Because art is tangible personal property, it may not be transferred into a charitable remainder trust ("CRT").
           
2. In general, artwork is an excellent asset for a charitable remainder annuity trust ("CRAT").
           
3. If art is transferred into a FLIP unitrust, the FLIP trigger event could be the sale of the artwork.
           
4. Under the intervening interest rule, if a charitable deduction is not allowed in the year of contribution, the donor will never be entitled to a charitable deduction with respect to that transfer.
           
5. It is possible to have an asset qualify as a related use property even though it is being transferred into a charitable remainder trust.
           
6. Although the donor may not retain use of artwork contributed to a CRT, the donor may allow family members to use the artwork until the CRT sells the property.
           
7. When computing the charitable deduction for a tangible personal property gift into a CRT, the Applicable Federal Rate ("AFR") for the contribution month or the prior two months must always be used.
           
8. Artwork that is created by the donor should not be transferred into a charitable remainder trust.
           
9. Gifts of artwork to CRTs are deductible up to 50% of AGI.
           
10. It is not permissible for the donor to direct the trustee of the CRT to sell the contributed artwork to a certain person or entity.