CHARITABLE REMAINDER TRUST SUMMARY

SPLIT-INTEREST TRUST ANALYSIS AND DOCUMENTATION

---

TRUST IDENTIFICATION

Trust Name: [TRUST NAME]

Trust EIN: [EIN]

Date Trust Created: [DATE]

Type of CRT:
☐ Charitable Remainder Annuity Trust (CRAT)
☐ Charitable Remainder Unitrust (CRUT)
☐ Net Income Charitable Remainder Unitrust (NICRUT)
☐ Net Income with Makeup Charitable Remainder Unitrust (NIMCRUT)
☐ Flip Charitable Remainder Unitrust (Flip CRUT)

State of Trust Situs: [STATE]

Governing Law: [STATE]

---

PARTIES TO THE TRUST

Grantor/Donor:
- Name: [FULL NAME]
- SSN: [SSN]
- Address: [ADDRESS]
- Date of Birth: [DATE]

Co-Grantor (if applicable):
- Name: [FULL NAME]
- SSN: [SSN]
- Address: [ADDRESS]
- Date of Birth: [DATE]

Non-Charitable Beneficiary(ies):

Name	SSN	Date of Birth	Relationship	% Interest
[NAME]	[SSN]	[DOB]	[RELATIONSHIP]	[%]
[NAME]	[SSN]	[DOB]	[RELATIONSHIP]	[%]

Charitable Remainder Beneficiary(ies):

Organization Name	EIN	Address	% Interest
[NAME]	[EIN]	[ADDRESS]	[%]
[NAME]	[EIN]	[ADDRESS]	[%]

Trustee(s):

Name	Address	Phone	Type
[NAME]	[ADDRESS]	[PHONE]	☐ Individual ☐ Corporate

---

SECTION 1: TRUST STRUCTURE

1.1 IRC § 664 Requirements Compliance Checklist:

☐ Irrevocable Trust - Trust is irrevocable
☐ Payout Requirement - Annual payout between 5% and 50%
☐ 10% Remainder Test - Remainder interest is at least 10% of initial FMV
☐ Qualified Charitable Beneficiary - Remainder passes to IRC § 170(c) organization
☐ Prohibited Transactions - Trust document prohibits self-dealing
☐ Calendar Year - Trust operates on calendar year basis

1.2 CRAT Specific Requirements (if applicable):

☐ Fixed annuity amount determined at creation
☐ No additional contributions permitted
☐ Annuity does not exceed 50% of initial FMV
☐ Probability of exhaustion test satisfied (5% test)

1.3 CRUT Specific Requirements (if applicable):

☐ Fixed percentage of annually revalued assets
☐ Additional contributions permitted
☐ Percentage between 5% and 50%
☐ Annual valuation of trust assets

---

SECTION 2: CONTRIBUTION DETAILS

2.1 Initial Contribution:

Property	Description	Date	Cost Basis	FMV at Transfer
[PROPERTY]	[DESCRIPTION]	[DATE]	$[AMOUNT]	$[AMOUNT]
[PROPERTY]	[DESCRIPTION]	[DATE]	$[AMOUNT]	$[AMOUNT]
TOTAL INITIAL CONTRIBUTION			$[TOTAL]	$[TOTAL]

2.2 Additional Contributions (CRUT only):

Property	Description	Date	Cost Basis	FMV at Transfer
[PROPERTY]	[DESCRIPTION]	[DATE]	$[AMOUNT]	$[AMOUNT]

2.3 Property Type Analysis:

☐ Cash - No special considerations
☐ Publicly Traded Securities - Valued at mean of high/low on transfer date
☐ Closely Held Stock - Requires qualified appraisal
☐ Real Property - Requires qualified appraisal; consider debt
☐ Partnership/LLC Interests - UBTI concerns; valuation required
☐ Tangible Personal Property - Related use requirement for full deduction
☐ Other: [DESCRIBE]

Appraisal Information (if required):
- Appraiser: [NAME]
- Appraisal Date: [DATE]
- Appraised Value: $[AMOUNT]
- Appraisal Report Attached: ☐ Yes ☐ No

---

SECTION 3: PAYOUT TERMS

3.1 CRAT Annuity Terms:

Item	Amount/Percentage
Fixed Annual Annuity	$[AMOUNT]
Annuity as % of Initial FMV	[%]
Payment Frequency	☐ Annual ☐ Semi-Annual ☐ Quarterly ☐ Monthly
Payment Timing	☐ Beginning of Period ☐ End of Period

3.2 CRUT Unitrust Terms:

Item	Amount/Percentage
Fixed Unitrust Percentage	[%]
Payment Frequency	☐ Annual ☐ Semi-Annual ☐ Quarterly ☐ Monthly
Payment Timing	☐ Beginning of Period ☐ End of Period
Valuation Date	[DATE/METHOD]

3.3 NICRUT/NIMCRUT Terms (if applicable):

☐ Net income limitation applies
☐ Makeup provision included
- Makeup account balance: $[AMOUNT]

3.4 Flip CRUT Terms (if applicable):

☐ Trust begins as NIMCRUT
☐ Converts to standard CRUT upon triggering event
- Triggering event: [DESCRIBE]
- Flip date (if occurred): [DATE]

3.5 Term of Income Interest:

☐ Life of Individual(s)
- Measuring life(s): [NAME(S)]
- Age(s) at creation: [AGE(S)]

☐ Term of Years
- Term: [NUMBER] years
- Maximum: 20 years

☐ Combination
- [DESCRIBE]

---

SECTION 4: CHARITABLE DEDUCTION CALCULATION

4.1 Section 7520 Rate:

Item	Value
Month of Transfer	[MONTH/YEAR]
Section 7520 Rate	[RATE]%
Alternative Rate (if elected)	[RATE]%

4.2 Present Value Calculation:

For CRAT:

Factor	Value
Initial FMV	$[AMOUNT]
Annuity Amount	$[AMOUNT]
Section 7520 Rate	[%]
Age(s) of Beneficiary(ies)	[AGE(S)]
Term (if applicable)	[YEARS]
Annuity Factor	[FACTOR]
Present Value of Annuity	$[AMOUNT]
Charitable Remainder Value	$[AMOUNT]
Remainder as % of FMV	[%]

For CRUT:

Factor	Value
Initial FMV	$[AMOUNT]
Unitrust Percentage	[%]
Section 7520 Rate	[%]
Adjusted Payout Rate	[%]
Age(s) of Beneficiary(ies)	[AGE(S)]
Term (if applicable)	[YEARS]
Remainder Factor	[FACTOR]
Charitable Remainder Value	$[AMOUNT]
Remainder as % of FMV	[%]

4.3 10% Remainder Test:

Item	Amount
Present Value of Remainder	$[AMOUNT]
Initial Fair Market Value	$[AMOUNT]
Remainder Percentage	[%]
10% Test Satisfied?	☐ Yes ☐ No

4.4 Charitable Deduction Summary:

Item	Amount
Present Value of Charitable Remainder	$[AMOUNT]
Limitation Applicable	[30% or 50% of AGI]
Donor's AGI	$[AMOUNT]
Current Year Deduction	$[AMOUNT]
Carryforward Amount	$[AMOUNT]

---

SECTION 5: INCOME TAX TREATMENT OF DISTRIBUTIONS

5.1 Four-Tier System (IRC § 664(b)):

Distributions from a CRT are characterized in the following order:

Tier	Category	Tax Rate	Trust Amount
1	Ordinary Income	Up to 37%	$[AMOUNT]
2	Capital Gains
2a	- 28% Rate Gains	28%	$[AMOUNT]
2b	- Unrecaptured § 1250	25%	$[AMOUNT]
2c	- Other Long-Term Gains	20%/15%/0%	$[AMOUNT]
2d	- Short-Term Gains	Ordinary Rates	$[AMOUNT]
3	Other Income	Varies	$[AMOUNT]
4	Trust Corpus	Tax-Free	$[AMOUNT]

5.2 Current Year Income Allocation:

Income Type	Amount Earned	Amount Distributed	Carryforward
Ordinary Income	$[AMOUNT]	$[AMOUNT]	$[AMOUNT]
Long-Term Capital Gain	$[AMOUNT]	$[AMOUNT]	$[AMOUNT]
Short-Term Capital Gain	$[AMOUNT]	$[AMOUNT]	$[AMOUNT]
Tax-Exempt Income	$[AMOUNT]	$[AMOUNT]	$[AMOUNT]
Total	$[TOTAL]	$[TOTAL]	$[TOTAL]

---

SECTION 6: ANNUAL COMPLIANCE REQUIREMENTS

6.1 Form 5227 Requirements:

☐ Form 5227, Split-Interest Trust Information Return, filed annually
☐ Due date: April 15 (calendar year trust)
☐ Extension available: 5.5 months

Required Schedules:

☐ Schedule A - Charitable Remainder Trust Information
☐ Schedule K-1 - Beneficiary's Share of Income

6.2 Trustee Annual Duties:

☐ Annual valuation of trust assets (CRUT)
☐ Calculation of required distribution
☐ Timely distribution to income beneficiaries
☐ Proper characterization of distributions
☐ Investment management
☐ Preparation and filing of Form 5227
☐ Issuance of Schedule K-1 to beneficiaries
☐ Payment of excise tax on UBTI (if any)

6.3 UBTI Considerations:

☐ Trust has no UBTI
☐ Trust has UBTI - IRC § 664(c)(2) excise tax applies
- UBTI Amount: $[AMOUNT]
- Excise Tax (100% of UBTI): $[AMOUNT]

---

SECTION 7: TRUST ADMINISTRATION

7.1 Investment Policy:

☐ Investment policy statement in place
☐ Diversification requirements
☐ UBTI avoidance strategies
☐ Liquidity for distributions

7.2 Prohibited Transactions:

The following transactions are prohibited:

☐ Self-dealing between trust and disqualified persons
☐ Taxable expenditures
☐ Excess business holdings
☐ Jeopardizing investments
☐ Loans to disqualified persons

7.3 Trust Modifications:

☐ Trust may be reformed to meet 10% test
☐ Early termination provisions: [DESCRIBE]
☐ Change of charitable beneficiary: [TERMS]

---

SECTION 8: TERMINATION AND REMAINDER

8.1 Termination Events:

☐ Death of income beneficiary(ies)
☐ Expiration of term of years
☐ Early termination (if permitted)

8.2 Distribution of Remainder:

Charitable Beneficiary	EIN	Percentage	Estimated Amount
[NAME]	[EIN]	[%]	$[AMOUNT]
[NAME]	[EIN]	[%]	$[AMOUNT]
Total		100%	$[TOTAL]

8.3 Contingent Charitable Beneficiaries:

If primary charitable beneficiary ceases to qualify:
[DESCRIBE CONTINGENT BENEFICIARY PROVISIONS]

---

SECTION 9: TAX REPORTING SUMMARY

Form	Filing Requirement	Due Date	Filed?
Form 5227	Annual split-interest trust return	April 15	☐ Yes
Schedule K-1	To income beneficiaries	With Form 5227	☐ Yes
Form 8283	For noncash contributions over $500	With donor's return	☐ Yes
Appraisal	For property over $5,000 (noncash)	Attached to return	☐ Yes

---

SECTION 10: DOCUMENT CHECKLIST

☐ Trust Agreement (original and all amendments)
☐ IRS Determination Letter (if obtained)
☐ Initial contribution documentation
☐ Appraisals for contributed property
☐ Form 5227 (all years)
☐ Schedule K-1s (all years)
☐ Annual trust accounting
☐ Investment statements
☐ Distribution records
☐ Trustee meeting minutes (if applicable)

---

SECTION 11: KEY CONTACTS

Role	Name	Phone	Email
Trustee	[NAME]	[PHONE]	[EMAIL]
Trust Attorney	[NAME]	[PHONE]	[EMAIL]
CPA/Tax Advisor	[NAME]	[PHONE]	[EMAIL]
Investment Advisor	[NAME]	[PHONE]	[EMAIL]
Charitable Beneficiary Contact	[NAME]	[PHONE]	[EMAIL]

---

CERTIFICATION

This summary accurately reflects the terms and status of the charitable remainder trust as of the date indicated.

Trustee Signature: ___________________________________

Printed Name: [NAME]

Date: [DATE]

---

This template is provided for informational purposes and should be reviewed by qualified tax counsel.