Question

A gift of income to charity with remainder to children is an example of which of the following?

a. charitable bequest
b. charitable remainder trust
c. charitable lead trust
d. private foundation

Answer 1

Option (c), A gift of income to charity with remainder to children is an example of a charitable lead trust, where the charity receives income for a certain period and the remainder goes to the donor's children.

Step-by-step explanation:

A gift of income to charity with remainder to children is an example of a charitable lead trust. This type of trust allows the donor to give assets to a charity for a period of time, after which the remaining assets pass to the beneficiaries, such as the donor's children. In a charitable lead trust, the charity receives the income interest first, and the non-charitable beneficiaries receive the remainder interest.