A CRT defers taxes upon the sale of farm equipment and provides cash flow to donors.

Once the revaluation occurs, Harry should consider contributing the dinars to a CRT, of which Harry and Wanda are income beneficiaries, before he sells the dinars. Gain on the sale of dinars by the CRT is not recognized for tax purposes because the CRT is a tax-exempt entity. Thus, Harry could defer the tax consequences of the sale, and pay income taxes only when he and Wanda receive payments from the CRT. Further, certain types of CRTs may provide greater opportunity to regulate the timing and flow of income to our donors and to grow assets tax-free.

Recent lawsuits and court orders have forced charities, planners, and donors to reevaluate the best way to preserve donor intent. This article highlights two issues for donors and gift planners: the practicality of placing narrow, binding restrictions on gifts and the need for flexibility when economic, social, or environmental factors make the original gift terms impractical. This article defines the issues, explores recent case studies involving donor intent, details options when things go wrong, and provides guidance for planners and charities in drafting gift agreements.