Susan creates charitable remainder trust

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Susan creates a charitable remainder trust into which she transfers $1 million cash. Susan retains a 20-year unitrust interest, which is valued at $500,000. When is Susan able to take her $500,000 charitable deduction?

a. $500,000 deduction is taken in the year the trust is funded.

b. $250,000 deduction is taken in the year the trust is funded; $250,000 deduction taken at the end of the 20 years.

c. $500,000 deduction taken at the end of the unitrust interest.

d. Cannot determine since a unitrust requires an annual valuation of the trust assets.

Reference no: EM131521882

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