Charitable Remainder Trusts: Income Tax, Inherited IRAs, Key Considerations for Trust and Estates Counsel

This CLE/CPE course will provide trust and estates counsel guidance on utilizing charitable remainder trusts (CRTs) for income tax and estate planning. The panel will discuss the mechanics of CRTs under current tax law, deduction of the charitable remainder interest, impact on the estate tax, and key challenges for counsel. The panel will also discuss the possibility of utilizing CRTs to stretch inherited IRAs and other planning techniques.

CRTs can provide significant income and estate tax advantages while also satisfying charitable intent. To ensure these advantages for clients, trust and estates counsel must have a complete understanding of the legal framework and tax rules applicable to CRTs.

A CRT is a tax-exempt, irrevocable trust meant to reduce taxable income, support charities, and possibly create a stream of retirement income. The use of either of the various types of CRTs is determined based on client needs and circumstances. In addition, structuring CRTs for income tax deduction, gift-tax efficient transfers, and as a possible option to stretch IRAs requires in-depth knowledge of complex tax rules.

Listen as our panel discusses the mechanics of CRTs under current tax law and the challenges for counsel, as well as offers key income and estate tax planning techniques.