Spousal Right of Election and Its Effects on CRTs

Educating donors
Charitable beneficiaries of CRTs will still get the charitable remainder when the intervening non-charitable interests end. However, if the CRT loses its tax exempt status, the remainder interest passing to the charity may be eroded by income taxes paid during the trust term. And, when a marriage, remarriage, move to another state or a change in state law requires a waiver of a spousal right of election within a relatively short period of time, and when failure to obtain the waiver could cost the donor a desired charitable deduction, alerting the donor that a waiver will be needed will, perhaps, cement a relationship.