IRA to charites

Submitted by Douglas Bauerband on Wed, 2014-11-19 18:00

I have a client who is worth approx. 2.5M and has approx. 650k in IRA’s.

Can she fund a CRUT with an IRA (This way she would receive a tax incentive for the CRUT and also receive an income)?

example: has 200k in one IRA…can she transfer this amount over to the CRUT without paying taxes on the 200k?

Would she then pay tax on the income coming out of the trust?

thank you,
Douglas

Permalink Submitted by Bruce Steiner on Wed, 2014-11-19 21:56

She can do it at her death, but not during her lifetime. It occasionally but not very often makes sense. If the proposal to limit stretchouts is enacted, that will be a workaround, as it was under the pre-2001 proposed regulations for IRA owners who didn’t have a spouse beneficiary and who elected recalculation.