Relief From 2005-24Relief From 2005-24
From David T. Leibell and Daniel L. Daniels, partners of Cummings & Lockwood in Stamford, Conn., we have this update: IRS extends indefinitely the safe harbor date for obtaining spousal waiver of right of election for CRUTs and CRATs. Responding to an outcry from the estate planning and planned giving committees over the waiver of right of election requirements for inter vivos charitable remainder
March 1, 2006
Rorie M. Sherman Editor in Chief
From David T. Leibell and Daniel L. Daniels, partners of Cummings & Lockwood in Stamford, Conn., we have this update:
IRS extends indefinitely the safe harbor date for obtaining spousal waiver of right of election for CRUTs and CRATs. Responding to an outcry from the estate planning and planned giving committees over the waiver of right of election requirements for inter vivos charitable remainder unitrusts (CRUTs) and annuity trusts (CRATs) set forth in Revenue Procedure 2005-24, the Internal Revenue Service published Notice 2006-15 extending the June 28, 2005, grandfather date in Rev. Proc. 2005-24, until the Service issues further guidance.
Rev. Proc. 2005-24 was a huge surprise to the charitable planning community when it was issued on April 18, 2005. Unless the safe-harbor provisions of the revenue procedure are followed, a large percentage of lifetime charitable remainder trusts (CRTs) established on or after June 28, 2005, will be disqualified from inception, resulting in the loss of the income, gift and estate tax charitable deductions as well as the taxation of all trust income and capital gains not paid out to the unitrust or annuity beneficiary.
The revenue procedure was issued to address IRS concerns regarding changes ...
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