The Highs and Lows of Rising Interest Rates

The annotations point out that if the trust is funded with unmarketable assets, the determination of fair market value that must be made at least annually must be made by an independent trustee or must be determined by a qualified appraisal from a qualified appraiser as defined in the regulations.

The language of the prior forms required the charitable reminder beneficiary to be an organization described in Section 170(c). Using this language could be a problem for an inter vivos CRUT, because such an organization could be a private foundation, which would then cause the donor to be subject to a lower income tax charitable deduction percentage limitation. The explanatory annotations include language in the event that the donor desires that a public charity be the charitable beneficiary.