The Joint Committee on Taxation just issued its General Explanation of the Tax Provisions of Public Law 119-21, the law being also known as OBBBA. Unfortunately, the JCT does not clarify the conflict between new Sec. 68 and pre-existing Sec. 641, but instead muddies the waters.

Attorneys who draft charitable remainder trusts for a client have a duty to provide competent service. However, CRT planning crosses several disciplines, and the attorney's failure in one area may cause severe problems for the client. This article uses examples from the presenter's experience with more than 16,000 CRTs to describe several traps in CRT planning and how to avoid them. It focuses on case studies of several CRTs that were doomed to fail and suggests things the planned giving officer and attorney could have done differently. Topics discussed include design, drafting, investment, and operation of CRTs.

By contributing a partial interest in appreciated rental real estate to a charitable remainder trust and then selling the balance of the property outside of the CRT, the donors increase their income stream for retirement and generate an income tax deduction to offset capital gains taxes on the sale portion. When doing charitable tax planning, remember that it is not an "all or nothing" choice!

How can fundraisers and advisors help their donors and clients first to understand and then consider charitable gift options? To be open to exploring giving plans that can work for them in their unique life stage and circumstances? This article helps gift planners and advisors broaden how they present giving options in terms of both charitable and tax planning benefits. It describes various constituencies and an understandable, usable approach to gift planning education that can help us move the donor/client learning curve along.