Question

Which of the following is a requirement for a testamentary charitable bequest to qualify for the unlimited charitable deduction? Please Explain.

I. The amount of the bequest must be determinable at the decedent's date of death.

II. The fair market value of the assets must be included in the decedent's gross estate.

III. The bequest must be payable to a qualifying charitable organization.

A. I only

B. II only

C. III only

D. I and II only

E. I, II, and III

Answer 1

E. I, II, III

Explanation : The amount of the bequest must be determinable at the descendent date of death to qualify as a unlimited charitable deduction otherwise deduction amount can not be ascertained.

The bequest must be payable to a qualified charitable organization otherwise it can't  be considered as testamentary charitable bequest.

The fair value of the assets must be included in the descendent's gross estate otherwise no charitable deduction will be allowed to him. If it has included in descendent's gross income then only after payment of bequests, it can be considered for charitable deduction for the descendent.