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Member
 
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Last Login: 6/25/2007 3:50:45 PM
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| It appears that on the termination of a CRUT, previously undistributed capital gains in effect disappear. Am I correct in that? Or, do the gains somehow flow through to the charitable beneficiary along with the final distribution of the trusts assets. (the charitable beneficiary was never an income beneficiary except to the extent of income earned after the death of the grantor/income beneficiary). I can't find any specific guidance on this. Thanks in advance for any help. Richard Cassidy
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Member
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Last Login: 12/1/2009 12:47:02 PM
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great question... have never seen this issue before-
do the regs under 664 address this?
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein. |
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Power Member
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| I have never seen the question but logic decrees that they would go away simply because the recipient would be exempt from taxes. I would draw an analgy where an individual has named a charity as the beneficiary of the IRA. When the individual dies all of that potential IRD disappears.
Mary Kay Foss
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Yes, the undistributed capital gains disappear. That is, they are distributed, untaxed, to the charitable remainderman, which is tax exempt, so they never get taxed.
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(the post above was from Jane Peebles, Esq.):
Anonymous (6/29/2006)
Yes, the undistributed capital gains disappear. That is, they are distributed, untaxed, to the charitable remainderman, which is tax exempt, so they never get taxed.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein. |
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