Spousal Right of Election and Its Effects on CRTs

The Internal Revenue Service’s Rev. Rul. 82-128 requires the CRT trust to condition the vesting of a beneficiary’s interest upon her payment of any death taxes attributable to her interest. On the flip side, the donor can stipulate that the funds come from another source, such as his estate.

Spousal right of election
There is another method in which a CRT could be paid to someone other than a charity: a spouse’s right of election permitted under many states’ laws.