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GiftLaw Pro Home   >  Chapter 3 - Deferred Gifts  >  3.10 Unitrust  >  3.10.10 Investments of Unitrust Corpus  >  Basic Quiz

Basic Quiz - 3.10.10 Investments of Unitrust Corpus

1. Charitable remainder trusts may not hold a life insurance policy as an investment.
           
2. Attorneys and CPAs normally are not Registered Investment Advisors (RIA) and therefore are not authorized to make specific investment recommendations.
           
3. The IRS has rules prohibiting charitable remainder trusts from investing in junk bonds.
           
4. One hundred basis points is the equivalent of 1%.
           
5. If a Unitrust has a low return rate, it is important to minimize fees and costs.
           
6. UPIA stands for the "United Property Investment Act."
           
7. 100 basis points is a common fee for a private trustee and investment advisor.
           
8. Four-tier accounting and investment strategy determine the type of income the trust pays to the beneficiary.
           
9. It is acceptable under the UPIA for a trustee to invest only in municipal bonds.
           
10. A charity may serve as a trustee and assist in the investment strategy.