8085 / What resources has the IRS provided for charitable remainder trusts to follow in meeting the various qualification requirements?
The IRS generally does not issue rulings concerning whether a charitable remainder trust that provides for annuity or unitrust payments for one or two measuring lives or a term of years satisfies the requirements of IRC Section 664.1 Instead, taxpayers are directed to follow sample forms for charitable remainder trusts. The IRS stated in 1992 that any CRT that “substantially follows” one of the sample forms that operates in a manner consistent with the terms of the trust instrument and that is valid under local law will be recognized by the Service as a valid CRT.2
In 2003, the Service released updated sample declarations of trusts and alternate provisions that meet the CRAT requirements under IRC Section 664 and Treasury Regulation Section 1.664-2. The forms for inter vivos CRATs are:
(1) Revenue Procedure 2003-53, 2003-2 CB 230 (one measuring life), superseding, Revenue Procedure 89-21, 1989-1 CB 842;
(2) Revenue Procedure 2003-54, 2003-2 CB 236 (term of years);
(3) Revenue Procedure 2003-55, 2003-2 CB 242 (consecutive interests for two measuring lives), superseding, Sec. 4 of Revenue Procedure 90-32, 1990-2 CB 546; and
(4) Revenue Procedure 2003-56, 2003-2 CB 249 (concurrent and consecutive interests for two measuring lives), superseding, Sec. 5 of Revenue Procedure 90-32, 1990-2 CB 546.
The forms for testamentary CRATs are:
(1) Revenue Procedure 2003-57, 2003-2 CB 257 (one measuring life), superseding, Sec. 6 of Revenue Procedure 90-32, 1990-2 CB 546;
(2) Revenue Procedure 2003-58, 2003-2 CB 262 (term of years);
(3) Revenue Procedure 2003-59, 2003-2 CB 268 (consecutive interests for two measuring lives), superseding, Sec. 7 of Revenue Procedure 90-32, 1990-2 CB 546; and
(4) Revenue Procedure 2003-60, 2003-2 CB 274 (concurrent and consecutive interests for two measuring lives), superseding, Sec. 8 of Revenue Procedure 90-32, 1990-2 CB 546.
In 2005, the Service released updated sample forms for CRUTs. The forms for inter vivos CRUTs are:
(1) Revenue Procedure 2005-52, 2005-34 IRB 326 (one measuring life);
(2) Revenue Procedure 2005-53, 2005-34 IRB 339 (term of years);
(3) Revenue Procedure 2005-54, 2005-34 IRB 353 (consecutive interests for two measuring lives);
(4) Revenue Procedure 2005-55, 2005-34 IRB 367 (concurrent and consecutive interests for two measuring lives).
The forms for testamentary CRUTs are:
(1) Revenue Procedure 2005-56, 2005-34 IRB 383 (one measuring life);
(2) Revenue Procedure 2005-57, 2005-34 IRB 392 (term of years);
(3) Revenue Procedure 2005-58, 2005-34 IRB 402 (consecutive interests for two measuring lives); and
(4) Revenue Procedure 2005-59, 2005-34 IRB 412 (concurrent and consecutive interests for two measuring lives).