CRUT Distributions

Unrelated to IRAs, however I have a question about a new 7% CRUT we are setting up. The CPA said to value the CRUT every quarter and base the quarterly distribution on 25% of 7% of that amount. I think that is incorrect, in that due to market fluctuations, that could result in an excess distribution (or shortfall). I thought it should be 7% of the prior year’s 12/31 balance divided by 4 or whatever Mode payment they decide on. I’m hoping they use Renaissance for administration, then we know it will be done correctly.



What does the lawyer drafting it say?

The lawyer should be able to tell the trustees and the accountant what they need in order to administer it.

According to Renaissance, the better day to value is 1-1 each year, that way the payments would be exactly known. It is a new CRUT, and I think the valuation had not yet been determined. You are correct, however in that it should be in the document, which I have not yet seen.

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