Tuesday, August 27, 2013
The Internal Revenue Service has recently published new statistics of income (SOI) for the 2012 Form 5227 the statistic handout is entitled, Split -Interest Trusts, Filing Year 2012, IRS.gov (Aug. 20, 2013). Provided below is the introduction to the handout:
Split-interest trusts make distributions to both charitable and non charitable beneficiaries, while providing tax benefits to their donor. All split-interest trusts must file Form 5227, Split-Interest Trust Information Return, annually to report financial activity, including asset holdings, income, and distributions, and to determine if they should be treated as a private foundation. This return is not used to calculate tax liability. Based on the method and timing of distributions, split-interest trusts are divided into four categories:
- Charitable remainder annuity trusts,
- Charitable remainder unitrusts,
- Charitable lead trusts, and
- Pooled income funds.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.