Financial Planner

Answer: D - No statement is true of charitable remainder unitrusts. Charitable remainder unitrust have income tax deductions equal to the total value of property minus present value of retained interest income. These trusts can hold tax-exempt securities and may hold sprinkling provisions. The remainderman is the charity and additional contributions are permitted. When income is insufficient for payout, the trustee can pay up to income and make up the deficiency in subsequent years.