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Why CTAI is the Best-Qualified Administrator of Charitable Remainder
Trusts
CTAI holds significant advantages over other professionals who are non-specialists
in administering Charitable Remainder Trusts (CRTs). We have specialized in
consulting on and administering a wide range of charitable giving instruments
since 1985.
Unique and highly specialized federal and state tax rules make the administration
of CRTs unlike that of any other complex trust. Many professionals are unaware
of how complicated and different administering a CRT can be from other types
of trust administration—and are unfamiliar with the legal and accounting
pitfalls.
A charitable remainder unitrust can be used as a lifelong financial and estate
planning tool, but only if it is drafted and administered for maximum flexibility.
Here are a few of the considerations the administrator must take into account:
- The four-tier accounting requirement for calculating and allocating
income and principal for annual annuity and unitrust transactions.
- The IRS's designation of CRTs as split-interest trusts—subject
to private foundation rules that prohibit a range of vaguely defined acts.
The law regarding these prohibitions is convoluted and the tax penalties for
violation can be onerous.
- The rules for tax-qualifying a charitable remainder trust are complex;
they must be strictly adhered to if a tax-exempt status is to be maintained.
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