Good morning,
I have never dealt with a CRUT before and I hope you will help.
I have a client whom got a DUI in 2007 and she was afraid she would be sued by the people she slammed her car into. She decided that she would put her personal residence and an addl $200K into a CRUT (to avoid her assets being seized if she was sued from the car accident.) An attny drafted a CRUT mid dec 07. As of the end of 2007 there was only the CRUT agreement (no assets were funded in it yet).
Jan 10, 08 she quit deeded her personal residence into the CRUT. She also transferred $200k cash into the CRUT's bank acct. The bank acct earned approx $4k for 2008. In 2008 she took out $10k from the CRUT's bank acct to get the trees trimmed on her (CRUT) property.) She also took out $2k for the property's re tax.
The trust allows the trustee to repair, alter, improve, renovate, reconstruct the real estate.... Does that mean the monies she took out of the trust for tree trimming and real estate taxes are deductible by the trust?
The CRUT agreement is such that upon death of the recipient (my client), the trustee (my client) shall distribute all of the then P and I of the trust to "The Columbus Foundation" on behalf of my clients CRUT. The CRUT is governed under the laws of Ohio.
Do I just need to do a 1041, 5227, gift tax return? Is there a good website to help me do this? I know she gets some kind of charitable deduction on her scha, but I'm not sure how much to calculate....
I have never dealt with a CRUT before and I hope you will help.
I have a client whom got a DUI in 2007 and she was afraid she would be sued by the people she slammed her car into. She decided that she would put her personal residence and an addl $200K into a CRUT (to avoid her assets being seized if she was sued from the car accident.) An attny drafted a CRUT mid dec 07. As of the end of 2007 there was only the CRUT agreement (no assets were funded in it yet).
Jan 10, 08 she quit deeded her personal residence into the CRUT. She also transferred $200k cash into the CRUT's bank acct. The bank acct earned approx $4k for 2008. In 2008 she took out $10k from the CRUT's bank acct to get the trees trimmed on her (CRUT) property.) She also took out $2k for the property's re tax.
The trust allows the trustee to repair, alter, improve, renovate, reconstruct the real estate.... Does that mean the monies she took out of the trust for tree trimming and real estate taxes are deductible by the trust?
The CRUT agreement is such that upon death of the recipient (my client), the trustee (my client) shall distribute all of the then P and I of the trust to "The Columbus Foundation" on behalf of my clients CRUT. The CRUT is governed under the laws of Ohio.
Do I just need to do a 1041, 5227, gift tax return? Is there a good website to help me do this? I know she gets some kind of charitable deduction on her scha, but I'm not sure how much to calculate....