Marci (class of '59) and Mark Matthews would like to make a significant gift to Barnard College and give their children some of their wealth while they are living. After exploring their options, they set up a $250,000 split-interest agreement with Barnard College. The trustees will pay Barnard College $17,500 annually for 20 years, after which their children will receive the trust principal.Fred and Frieda Foster, ages 68 and 65 respectively, own stock worth $750,000 that they purchased 30 years ago for $50,000. If they were to sell the stock and reinvest the proceeds, tax on the gain would have huge tax consequences. Instead, they arrange a split-interest agreement with a local university. The Fosters are to receive $30,000 annually for 15 years, at which time the assets are awarded to the university. What type of trust would this be

Answer rating: 100% (QA)

The types of trusts used in the scenarios described would be 1 Charitable Remainder Annuity Trust CR... View the full answer