Johnson transfers $500,000 of securities to an irrevocable trust, which is to pay him an income interest equal to five percent of the trust value determined each year for a term of 15 years. At the end of the 15-year term the remainder of the property shall pass to St. Phillip's Hospital for Children. This is an example of what kind of trust? 1. A grantor retained income trust. 2. A charitable lead trust. 3. A charitable remainder unitrust. 4. A charitable remainder annuity trust. 01 02 03 04
Johnson transfers $500,000 of securities to an irrevocable trust, which is to pay him an income interest equal to five percent of the trust value determined each year for a term of 15 years. At the end of the 15-year term the remainder of the property shall pass to St. Phillip's Hospital for Children. This is an example of what kind of trust? 1. A grantor retained income trust. 2. A charitable lead trust. 3. A charitable remainder unitrust. 4. A charitable remainder annuity trust. 01 02 03 04
Chapter8: Trusts
Section: Chapter Questions
Problem 2CTD
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Transcribed Image Text:Johnson transfers $500,000 of securities to an irrevocable trust, which is to pay him an income interest equal to five percent of the trust value determined each year
for a term of 15 years. At the end of the 15-year term the remainder of the property shall pass to St. Philip's Hospital for Children. This is an example of what kind of
trust?
1. A grantor retained income trust.
2. A charitable lead trust.
3. A charitable remainder unitrust.
4. A charitable remainder annuity trust.
01
02
03
04
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