A Charitable Remainder Trust

question 34

Multiple Choice

A charitable remainder trust

• A)splits assets between a surviving spouse and a trust
• B)distributes income on a trust to a charitable organization for a period of time, after which, the principal assets are transferred to a beneficiary
• C)is the same as a Q-TIP trust
• D)distributes income from trust assets to individual beneficiaries for a period of time, after which, the principal assets are transferred to a remainderman, which must be a charitable organization

---

Definitions:

Sample Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of sample data values.

Variance

A measure of the spread or dispersion of a set of values, indicating how much the values differ from the mean of the set.

Risk

Exposure to uncertainty or potential financial loss; the chance that an investment's actual gains will differ from expected gains.

Consistency

A property of an estimator in statistics that indicates the ability to produce estimates closer to the true parameter value as the sample size increases.