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Charitable Remainder Trusts and the 5227

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1 Lesson / $55 / 2 CPE hours

With increasing income tax rates on the wealthiest taxpayers, client interest is growing in using charitable remainder trusts as a planning device not only to benefit charity, but to also reduce income and transfer taxes, especially when a taxpayer has appreciated property. Important rules involving income, gift and estate taxation may need to be addressed. When such a trust is created, it becomes necessary to prepare and file Form 5227, Split-Interest Trust Return to report the income and distributions of the trust, as well as to advise the IRS of the trust’s ongoing performance.