A Split-Interest Gift Transfer

question 76

Multiple Choice

A split-interest gift transfer

• A)involves two public (charitable)organizations.
• B)involves two present interests.
• C)qualifies for a charitable contribution deduction if the recipient charity receives a guaranteed annuity, which is a present interest.
• D)cannot qualify for a deduction if a future interest is given to a charitable organization.

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Definitions:

Act

A written ordinance of a legislative body or an action done with a specific intention or outcome in mind.

Legal Value

Refers to something of worth that is recognized by law, often in the context of contracts where it pertains to the exchange of goods, services, or promises that are enforceable.

Preexisting Duty

An obligation that one party already owes to another under the law or an existing contract, which cannot serve as new consideration for a new contract.

Preexisting Duty Rule

A legal principle stating that an agreement to do something that one is already legally obligated to do is not valid consideration for a new contract.