Spousal Right of Election and Its Effects on CRTs

What you need to know
For CRTs created on or after June 28, failure of the donor’s spouse to waive the election right when the trust is created will disqualify the CRT.

The Rev. Proc. notes that no waiver is required if applicable state law doesn’t permit CRT assets to be invaded to satisfy the spousal right of election. It also states that events occurring after the CRT is created — including the donor’s move to a state that permits surviving spouses to reach CRT assets — may disqualify a CRT from the date of its creation.