A taxpayer uses a CRT to provide an income stream to a spouse as part of a divorce settlement, avoids capital gains tax, receives an income tax deduction, and controls the disposition of assets to the charity of his choice.

While many gifts of securities into planned gift arrangements are relatively straightforward, it is not uncommon for gift planners to encounter significant difficulties when dealing with more complicated transactions. This article provides gift planners (nonprofit and for-profit alike) with the required knowledge to effectively address complicated stock issues and successfully structure and complete planned gifts funded with stock. Specific areas of consideration include taxation issues, valuation issues, qualified appraisal rules for closely held securities, redemption of closely held securities, dealing with buy-sell agreements, handling special situations, and managing the impact of the Patriot Act on stock gift transactions.

Naming a CRT as an IRA beneficiary can provide an income stream for heirs, and may be one of the few ways to "stretch" the payout from an IRA over a beneficiary's life expectancy.

Gift planners who work for and/or advise charities or donors as counsel need to be aware of the best practices associated with the education, cultivation, negotiation, completion, recognition and stewardship of planned gifts. Best practices assure compliance with legal and ethical standards to serve the interests of both donors and charities. Gift revenue may be increased for charities while tax and other benefits can be maximized for donors at reduced risk of legal or ethical violations. This article explores the most important elements in creating effective gift planning policies and procedures. It shares model policies for types of planned gifts, assets for gifts, documentation, privacy, crediting, valuing, recognition, stewardship, reporting, ethical standards and many other topics.