Contributing low basis stock from an incentive stock option plan to a charitable remainder trust defers recognition of capital gain.

Attorneys who draft charitable remainder trusts for a client have a duty to provide competent service. However, CRT planning crosses several disciplines, and the attorney's failure in one area may cause severe problems for the client. This article uses examples from the presenter's experience with more than 16,000 CRTs to describe several traps in CRT planning and how to avoid them. It focuses on case studies of several CRTs that were doomed to fail and suggests things the planned giving officer and attorney could have done differently. Topics discussed include design, drafting, investment, and operation of CRTs.

Normally, charitable planners view pooled income funds as a great financial planning tool during life, and not a vehicle to transfer wealth. This case study may alter that assumption! Contributing to a PIF allows our donor to benefit charity, avoid potential capital gains taxes, transfer wealth to younger generations, and receive lifetime cash flow.

In Rev. Rul. 2024-24, the Service announced the Section 7520 rate for November will remain at 4.4%. The average rate for 2023 was 4.88%, while the average for 2024 is 5.04%.