Contents

1 2C H A P T E R T W E L V ECharitable Remainder Trusts§ 12.1 Definitions 406(a) Basic Terminology 406(b) Trust Requirement 415§ 12.2 Charitable RemainderAnnuity Trust Rules 416(a) Payment of AnnuityAmount 417(b) Minimum AnnuityAmount 418(c) Maximum AnnuityAmount 419(d) Permissible IncomeRecipients 420(e) Other Payments 421(f) Period of Paymentof Annuity 422(g) Permissible RemainderInterest Beneficiaries 423(h) AdditionalContributions 426(i) Minimum Value ofRemainder Interest 426(j) Charitable Deductions 427§ 12.3 Charitable RemainderUnitrust Rules 427(a) Payment of UnitrustAmount 427(b) Minimum UnitrustAmount 433(c) Maximum UnitrustAmount 433(d) Permissible IncomeRecipients 434(e) Other Payments 436 405 (f) Period of Payment ofUnitrust Amount 437(g) Permissible RemainderInterest Beneficiaries 438(h) AdditionalContributions 440(i) Minimum Value ofRemainder Interest 441(j) Charitable Deductions 442§ 12.4 Issues 442(a) Transfers of Options 442(b) Right to ChangeCharities or Trustees 445(c) Transfers of TangiblePersonal Property 447(d) Allocation of Gainsto Income 448(e) Death Taxes 449(f) Valuation ofUnmarketable Assets 449(g) Time for Paying IncomeAmount 450(h) Determining CertainGift Amounts 451(i) Scriveners’ Errors 452§ 12.5 Tax Treatment ofDistributions 453(a) Characterization andOrdering Rules—InGeneral 453(b) Capital Gains Taxation 455(c) Other Requirements 456(d) Tax Treatment of OtherDistributions 457(e) Anti-Abuse Rules 458