NU Online News Service, April 1, 2005, 9:28 a.m. EST
The Internal Revenue Service has published guidance that affects spousal election rights associated with charitable remainder trusts.[@@]
The guidance gives “safe harbor” protection to taxpayers who want to avoid the disqualification of a CRT because state law gives the surviving spouse of a CRT “grantor” who has died a spousal right of election.
Few taxpayers understand that giving a surviving spouse the right to take a share of a CRT can disqualify the trust, IRS officials write in the guidance.