FIPL Quiz Unit 7 Solved 100% Correct
Excluded from medicaid eligibility - ANSWER-Primary residence, one MV, life
insurance, funeral expenses, specific types of trusts
Family Limited Partnerships (FLP) - ANSWER-One+ member passes property for a
small general partnership and large limited partnership. Large (general partner) has
liability and management rights and the small (limited partner) has no management
rights or liability
Grantor Retained Annuity Trust (GRAT) - ANSWER-An irrevocable trust that pays a
fixed annuity to the grantor (settlor) for some defined term, and pays the remainder
interest of the trust to a non-charitable beneficiary.
Grantor Retained Income Trust (GRIT) - ANSWER-An irrevocable trust in which the
grantor retains an income interest in the trust for the term of the trust. Thus, the grantor
will donate property to the trust and the income from the asset will be distributed to the
grantor during the term of the trust. At the end of the trust term, the remaining property
is distributed to the beneficiary (remainderman)
Grantor Retained Unitrust (GRUT) - ANSWER-An irrevocable trust that annually pays a
fixed percentage of the value of its assets (as revalued on an annual basis) to the
grantor or (settlor) for some defined term, and pays the remainder interest of the trust to
a non-charitable beneficiary.
Intentionally Defective Grantor Trust (IDGT) - ANSWER-used to freeze the value of
assets transferred to family members or loved ones for estate tax purposes. A gift to an
IDGT is a completed gift for estate and gift tax purposes, but is treated as a grantor trust
for income tax purposes.
Medicaid is for - ANSWER-all eligible needy (generally labeled as poor)
Medicaid lookback period - ANSWER-5 years
Medicare is for - ANSWER-Medicare is designed for 65+ year olds, people with certain
disabilities
Payments cancel on - ANSWER-Private Annuities and SCINs (upon death)
Private Annuity - ANSWER-the annuitant sells an asset to a buyer in exchange for an
unsecured promise from the buyer to make fixed annual payments to the annuitant for
the remainder of the annuitant's life
Private annuity in gross estate - ANSWER-Annuity payments received that are not
consumed
Excluded from medicaid eligibility - ANSWER-Primary residence, one MV, life
insurance, funeral expenses, specific types of trusts
Family Limited Partnerships (FLP) - ANSWER-One+ member passes property for a
small general partnership and large limited partnership. Large (general partner) has
liability and management rights and the small (limited partner) has no management
rights or liability
Grantor Retained Annuity Trust (GRAT) - ANSWER-An irrevocable trust that pays a
fixed annuity to the grantor (settlor) for some defined term, and pays the remainder
interest of the trust to a non-charitable beneficiary.
Grantor Retained Income Trust (GRIT) - ANSWER-An irrevocable trust in which the
grantor retains an income interest in the trust for the term of the trust. Thus, the grantor
will donate property to the trust and the income from the asset will be distributed to the
grantor during the term of the trust. At the end of the trust term, the remaining property
is distributed to the beneficiary (remainderman)
Grantor Retained Unitrust (GRUT) - ANSWER-An irrevocable trust that annually pays a
fixed percentage of the value of its assets (as revalued on an annual basis) to the
grantor or (settlor) for some defined term, and pays the remainder interest of the trust to
a non-charitable beneficiary.
Intentionally Defective Grantor Trust (IDGT) - ANSWER-used to freeze the value of
assets transferred to family members or loved ones for estate tax purposes. A gift to an
IDGT is a completed gift for estate and gift tax purposes, but is treated as a grantor trust
for income tax purposes.
Medicaid is for - ANSWER-all eligible needy (generally labeled as poor)
Medicaid lookback period - ANSWER-5 years
Medicare is for - ANSWER-Medicare is designed for 65+ year olds, people with certain
disabilities
Payments cancel on - ANSWER-Private Annuities and SCINs (upon death)
Private Annuity - ANSWER-the annuitant sells an asset to a buyer in exchange for an
unsecured promise from the buyer to make fixed annual payments to the annuitant for
the remainder of the annuitant's life
Private annuity in gross estate - ANSWER-Annuity payments received that are not
consumed
