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Member
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Last Login: 1/7/2009 12:13:53 PM
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A client asked what does she do to close out a CRUT, she said that she did not need the income but thought the charity might needed it more. My response was to say give them the assets and we would then file a final return. After giving that advice, I thought, is there some way to get an additional charitable deduction by taking a deduction in the current year for an amount based on the "FMV" of the assets transferred less the original deduction. I only do two CRUTs, am I right?
Steve Wojdowski
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Last Login: 12/1/2009 12:47:02 PM
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| although common sense would seem to indicate that an agreement between the beneficiaries (charitable and the grantor) and the trustee should be sufficient, my recollection is that it is adviseable to request a court's blessing. this is a legal question, so i would ask the trust's attorney for input. also a good question to ask the attorney whether a court could "unwind" the crt (might depend on how long it has been in existence- if so short it has not filed a return there might be some slight chance here) in exchange for a full contribution to the charity. swojcpa (1/7/2009)
A client asked what does she do to close out a CRUT, she said that she did not need the income but thought the charity might needed it more. My response was to say give them the assets and we would then file a final return. After giving that advice, I thought, is there some way to get an additional charitable deduction by taking a deduction in the current year for an amount based on the "FMV" of the assets transferred less the original deduction. I only do two CRUTs, am I right?
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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