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Charitable planning · Retirement assets Municipal bonds change what the trust earns. They do not erase the ordinary income it received from the IRA. By Klaus Gottlieb, Esq. · October 6, 2026 · 11 min read Short answer. A properly designed charitable remainder trust can use inherited IRA proceeds to make payments to children over their lifetimes or a term of up to twenty years. But buying municipal bonds inside the CRT does not make those payments immediately tax-free. The

A Delaware statutory trust is not a donative trust of the sort estate planners usually mean by the word. Delaware law defines a statutory trust as an unincorporated association and, unless its governing documents provide otherwise, a separate legal entity. A syndicated DST used in a § 1031 exchange is then deliberately constrained so that federal income-tax law can look through that state-law entity. Under the facts of Rev. Rul. 2004-86, a single-class investment trust whose

Short answer. A NICRUT and a NIMCRUT use the same net-income limitation: each year, the trust pays the lesser of the stated unitrust amount or its trust accounting income. The difference is that a NIMCRUT keeps track of prior shortfalls and may pay them later. But the makeup account is useful only if the trust will remain a NIMCRUT and can later produce enough trust accounting income to exceed the current year's regular unitrust amount. If the trust flips to a straight CRUT,

Open the full PDF article By Klaus Gottlieb, Esq. Jurisdiction Federal, with California fiduciary-law overlay Primary Statutes IRC §§ 6034, 664, 4941, 4946, 4947(a)(2); Cal. Prob. Code §§ 16002, 16003, 16045–16054 Key Authorities Treas. Reg. §§ 1.664-1(a)(7), 53.4947-1(c); IRS Form 5227, Split-Interest Trust Information Return; IRS Statistics of Income Form 5227 microdata, filing years 2016, 2017, 2020, 2021, and 2022 Last Reviewed August 2026 Category Charitable Planning — R

Short answer. Yes. One spouse can fund a California charitable remainder unitrust alone if the funding asset is that spouse's separate property. Community property requires a different analysis, but not necessarily a different CRUT. Both spouses can transfer community property to one CRUT while only one spouse receives the unitrust payments. Federal law separates who contributes the property from who receives the unitrust interest. That distinction can matter substantially fo

Short answer. Federal qualification under § 664 is not a state exemption. New Jersey and Pennsylvania each treat an ordinary CRAT or CRUT as a taxable trust rather than an exempt charitable trust, and each taxes the trust on sale gain retained in the year of the sale. On a $2 million unitrust funded with property carrying $1.6 million of gain and paying five percent over twenty years, that costs roughly $128,000 in New Jersey and roughly $46,000 in Pennsylvania, against nothi

Short answer. A SpaceX shareholder saving capital gains tax after the IPO has three principal instruments, and they solve different problems. An exchange fund diversifies a concentrated position without a current sale, at the price of a multi-year holding period and no cash. A donor-advised fund eliminates the gain on donated shares and produces a fair-market-value deduction, at the price of giving the shares away entirely. A charitable remainder unitrust sells the shares fre

Jurisdiction: Federal, with modeled state income tax sensitivity (California baseline) Primary Statutes: IRC §§ 664, 7520, 1014; Treas. Reg. § 1.664-4 Key Authorities: Klaus Gottlieb, “When Does a Charitable Remainder Unitrust Outperform? A Monte Carlo, Multi-Benchmark Suitability Framework,” 39 J. Fin. Plan., no. 8, Aug. 2026, at 60; Klaus Gottlieb, “Charitable Remainder Trusts, a Decade After the Last IRS Study,” Tax Notes Federal, Mar. 9, 2026, p. 1613; Klaus Gottlieb, “Op

Jurisdiction: Federal, with a California overlay for income tax conformity, marital property, charity oversight, documentary transfer tax, and property tax reassessment Primary Statutes: IRC §§ 170, 311(b), 512, 514, 664, 751, 1011(b), 1045, 1060, 1202, 1361 to 1367, 1374, 4941, 4943, 4944, 4946, 4947; Treas. Reg. §§ 1.170A-16, 1.170A-17, 1.337(d)-4, 1.664-1, 1.664-3, 53.4941(d)-3, 53.4947-2; Cal. Rev. & Tax. Code §§ 64, 11911, 17755; Cal. Fam. Code §§ 760, 852 Key Authoritie

Jurisdiction: Federal Primary Statutes: IRC §§ 664, 6104(b) Key Authorities: Klaus Gottlieb, “Charitable Remainder Trusts, a Decade After the Last IRS Study,” Tax Notes Federal, Mar. 9, 2026, p. 1613; Lisa S. Rosenmerkel, “Split-Interest Trusts, Filing Year 2012,” 33(3) Statistics of Income Bulletin 51 (Winter 2014); IRS SOI Split-Interest Trust microdata (Form 5227, filing years 2016–2022) Last Reviewed: July 2026 Category: Charitable Planning — Research / Data By Klaus Gott

Jurisdiction: Federal Primary Statutes: IRC §§ 664(b), 664(c)(1), 664(d)(1), 72, 1015, 6011, 6111, 6112, 6501(c)(10), 6707A, 6708, 4965 Key Authorities: T.D. 10051 (Fed. Reg. July 9, 2026); Treas. Reg. §§ 1.6011-15, 1.6011-4; REG-108761-22, 89 Fed. Reg. 20,569 (Mar. 25, 2024); Gerhardt v. Commissioner, 160 T.C. No. 9 (2023); Furrer v. Commissioner, T.C. Memo. 2022-100; United States v. Eickhoff, No. 2:22-cv-04027 (W.D. Mo.); IR-2026-82 (July 8, 2026); IRS Forms 8886, 8918 Las

Jurisdiction: Federal charitable remainder trust law, with a community-property overlay. California is the representative community-property jurisdiction. Primary Statutes: IRC §§ 664, 7520, 1041, 2516, 1001, 4941, 4945, 4947(a)(2), 507; Cal. Fam. Code §§ 760, 852, 1100(b), 2550; Cal. Prob. Code § 15412 Key Authorities: Treas. Reg. §§ 1.664-1, 1.664-3, 53.4947-1; Rev. Rul. 2008-41, 2008-30 I.R.B. 170; PLRs 200143028, 200333013, 200539008, 200616008, 201648007, 202601002; In r

Jurisdiction: Federal Primary Statutes: IRC §§ 401(a)(9)(H), 408, 664(b), 664(c), 664(d)(2), 691, 691(c), 1014(c), 170, 2055, 7520 Key Authorities: Treas. Reg. §§ 1.664-1(d), 1.664-3(a)(5), 1.664-4; Rev. Rul. 77-374, 1977-2 C.B. 329; Rev. Proc. 2016-42, 2016-34 I.R.B. 269; IRS Pub. 590-B; IRS Pub. 1458 (Actuarial Valuations); Table 2010CM Last Reviewed: June 2026 Category: Charitable Planning — CRUT Design / Retirement Assets At a Glance What the strategy is, in one sentence

Charitable Planning · CRT Funding By Klaus Gottlieb, Esq. · June 2026 · 14 min read Jurisdiction Federal, with California fiduciary-law overlay Primary Statutes IRC §§ 170(b), 170(d)(1), 170(e)(1)(A), 170(f)(8), 170(f)(11), 511–514, 664, 664(b), 664(c), 664(d)(2), 4941, 4946, 4947, 6050L, 7520; Cal. Prob. Code §§ 16047, 16048 Key Authorities CCA 202302012; Estate of Hoensheid v. Commissioner, T.C. Memo. 2023-34; Palmer v. Commissioner, 62 T.C. 684 (1974), aff'd on another

Jurisdiction: Federal, with controlling state creditor, trust, and voidable-transaction law overlay Primary Statutes: IRC §§ 664, 664(b), 170, 2055, 2056(b)(8), 2522, 2523(g), 7520; 11 U.S.C. §§ 541(c)(2), 548(a)(2), 548(e); Uniform Voidable Transactions Act §§ 4, 5; Uniform Trust Code §§ 502, 503, 505, 506 Key Authorities: Patterson v. Shumate, 504 U.S. 753 (1992); United States v. Estate of Grace, 395 U.S. 316 (1969); Treas. Reg. § 1.664-3(a)(5); Rev. Rul. 2002-20, 2002-1 C

Jurisdiction: Federal Primary Statutes: IRC §§ 664(d)(1), 664(d)(2), 664(f), 170, 2055, 2056(b)(8), 2501, 2503(b), 2522, 2523(g), 2601, 7520 Key Authorities: Treas. Reg. §§ 1.664-3(a)(5), 1.664-3(a)(3), 1.664-4; Rev. Rul. 77-374, 1977-2 C.B. 329; Rev. Proc. 2016-42, 2016-34 I.R.B. 269; Rev. Procs. 2005-52 through 2005-59; IRS Pub. 1458 (Actuarial Valuations); Table 2010CM Last Reviewed: June 2026 Category: Charitable Planning -- CRUT Design At a Glance The four payout periods

Jurisdiction Federal, with California fiduciary-law overlay Primary Statutes IRC §§ 664, 1001(a), 1001(e), 170, 2055, 2511, 2512, 2522, 4941, 4946, 4947, 7520; Cal. Prob. Code §§ 15300, 15301, 15403, 15404, 15405; Cal. Gov. Code §§ 12591, 12591.1 Key Authorities Treas. Reg. §§ 1.1001-1(f), 1.1014-5(c), 1.1015-1(b), 1.664-1(d), 1.7520-3(b)(3), 20.2031-7, 1.6011-4(b)(6); Rev. Rul. 72-243, 1972-1 C.B. 233; Rev. Rul. 86-60, 1986-1 C.B. 302; Notice 2008-99, 2008-47 I.R.B. 1194; T.

Jurisdiction Federal, with California overlay Primary Statutes IRC §§ 170(b), 170(f)(11), 358, 368, 664, 1001, 1012, 1045, 1202, 2522, 4941, 4946, 4947, 7520 Key Authorities Lucas v. Earl, 281 U.S. 111 (1930); Helvering v. Horst, 311 U.S. 112 (1940); Palmer v. Commissioner, 62 T.C. 684 (1974), aff'd on another issue, 523 F.2d 1308 (8th Cir. 1975); Ferguson v. Commissioner, 108 T.C. 244 (1997), aff'd, 174 F.3d 997 (9th Cir. 1999); Rauenhorst v. Commissioner, 119 T.C. 157 (2002

Jurisdiction Federal, with California fiduciary-law overlay Primary Statutes IRC §§ 664, 170, 1001(e), 2055, 2522, 4941, 4946, 4947, 6110(k)(3), 7520; Cal. Prob. Code §§ 15300, 15403, 15404, 15409, 15412 Key Authorities Treas. Reg. §§ 1.664-1, 1.664-3, 1.1001-1(f), 1.7520-3(b)(3), 1.1014-5, 25.2511-2(c); Rev. Rul. 72-243, 1972-1 C.B. 233; Rev. Rul. 77-374, 1977-2 C.B. 329; Rev. Rul. 78-197, 1978-1 C.B. 83; Rev. Rul. 86-60, 1986-1 C.B. 302; Rev. Rul. 2008-41, 2008-30 I.R.B. 17

Jurisdiction Federal Primary Statutes IRC §§ 664, 170(b), 170(f)(18), 2522, 4942, 4943(e), 4944, 4966, 4967, 7520; Treas. Reg. §§ 1.664-1 et seq., 1.664-3(a)(6), 25.2511-2(c) Key Authorities Rev. Rul. 68-417, 1968-2 C.B. 103; Rev. Rul. 76-7, 1976-1 C.B. 179; Rev. Rul. 76-8, 1976-1 C.B. 179; Rev. Rul. 77-275, 1977-2 C.B. 346; Rev. Rul. 77-374, 1977-2 C.B. 329; Rev. Rul. 78-197, 1978-1 C.B. 83; Rev. Rul. 79-368, 1979-2 C.B. 109; Rev. Proc. 2005-52, 2005-2 C.B. 326; Rev. Proc. 2