CHARITABLE GIVING: WHAT NOT TO DOCHARITABLE GIVING: WHAT NOT TO DO

Rorie M. Sherman Editor in Chief

David T. Leibell and Daniel L. Daniels, partners in the Stamford, Conn. office of Cummings & Lockwood LLC, report that a recently released Technical Advice Memorandum (TAM) provides a lovely roadmap on how not to administer a charitable remainder trust (CRT). Here's what Leibell and Daniels have to say:

In TAM 200628026, released on July 14, the Internal Revenue Service ruled that a trust was not a qualified CRT for federal income tax purposes. That's because the grantor/trustee remained personally liable on the mortgage for the real property transferred to the trust. Also, the trust was used as if it were the grantor/trustee's personal bank account, which means it was not administered in accordance with In...