Charitable Trust Chicago Illinois

Chicago Small Business Accountant

Updated July 22, 2015
 
Charitable Trust Chicago Illinois

 
Charitable Remainder Trusts exist whenever there is a noncharitable income beneficiary of a trust. The gifts of remainder interests will qualify for a charitable contribution deduction only if the trust is a charitable remainder annuity trust (CRAT) or a charitable remainder unitrust (CRUT).

 
An annuity trust is a trust from which a sum certain of a specified amount is to be paid to the income beneficiary or beneficiaries. The specified amount cannot be less than five percent, and no more than fifty percent of the initial net fair market value of all property placed in trust. Also, it must be paid at least annually to the income beneficiary.

 
A unitrust is a trust which specifies that the income beneficiary or beneficiaries are to receive annual payments based upon a fixed percentage of the net fair market value of the trust’s assets as determined each year. The fixed percentage cannot be less than five percent or more than fifty percent of the net fair market value of the trusts assets for the year. For this purpose, trust income excludes capital gains, and trust assets must be valued annually.

 
CRAT’s and CRUT’s cannot have noncharitable remainder interests. Generally, the remainder interests must pass to a charity upon the termination of the last income interest, and the trust instrument must contain a provision that determines how this final payment is to be made.

 
If you are having problems with your Charitable Trust Chicago Illinois or have issues with your accounting in general, we would love to help. I enjoy hearing from my readers, and can be contacted at
 
Chris@AccountingSolutionsltd.com
 
Additional Accounting Articles and information on my firm can be found at
 
www.AccountingSolutionsLtd.com
 
Chris Amundson is the President of Accounting Solutions Ltd., a full service public accounting firm of Certified Public Accountants and Enrolled Agents handling the bookkeeping, accounting, tax preparation, and audit representation needs of Businesses, Estates, Trusts, and Upper Income Individuals.
 

Chris Amundson is President of Accounting Solutions Ltd. located in Chicago, Illinois

Chicago Accounting Firm & Tax Solutions for Small Businesses

Last updated on September 24, 2015
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