charitable remainder trust

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charitable remainder trust (Charitable Remainder Irrevocable Unitrust)

n. a form of trust in which the donor (trustor or settlor) places substantial funds or assets into an irrevocable trust (a trust in which the basic terms cannot be changed or the gift withdrawn) with an independent trustee, in which the assets are to go to charity on the death of the donor, but the donor (or specific beneficiaries) will receive regular profits from the trust during the donor's lifetime. The IRS will allow a large deduction in the year the funds or assets are donated to the trust, and the tax savings can be used to buy an insurance policy on the life of the donor which will pay his/her children the proceeds upon the donor's death. Thus, the donor (trustor) can make the gift to charity, make a return on his/her money and still arrange to make a large gift at death to his/her heirs. The disadvantage is that the assets are permanently tied up or committed.

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Excise taxes on political expenditures and excess lobbying activities reported by charities, private foundations, and split-interest trusts Tax on political Tax on excess expenditures lobbying expenditures 2010 $41,254 $271,604 2011 $29,859 $68,107 2012 $3,261,734 $516,127 2013 $413,229 $340,907 2014 $645,503 $254,752 From Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code, by calendar year.
7) While the existence of government-issue CRT forms should have substantially reduced the need for a qualified reformation regime, it appears, at least based on private letter rulings (PLRs) issued in this area, that practitioners continue to draft impermissible split-interest trusts.
Six months for split-interest trusts filing Form 5227.
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483, which sets forth the return filing requirements for charitable and split-interest trusts.
Charitable Distributions by Split-Interest Trusts, by Charity Type Proportions of nearly $3 billion in distributions reported for 2010 on Form 522?
Of the three types of split-interest trusts (SITs), trustees of charitable lead trusts continued to be the most likely to file either an initial or a final return, with returns for ongoing trusts making up 87.
In addition, for tax years beginning after 2006, trusts that are split-interest trusts described in Sec.
As in prior years, charitable remainder trusts were the most common split-interest trusts, accounting for 93.