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Ted R. Batson, Jr. is Vice President of Professional Services for Renaissance Inc., the nation's leading third party administrator of charitable gifts. Since his employment in 1993, Mr. Batson has developed a wealth of practical, hands-on experience in dealing with complex issues related to the creative use of unmarketable and unusual assets to fund charitable gifts. He routinely consults with the more than 2,000 attorneys, CPAs, and financial service professionals that look to Renaissance for case assistance. Mr. Batson has spoken to numerous groups regarding charitable planning and has been published in several professional publications. Mr. Batson is a member of the American Institute of Certified Public Accountants, the Indiana CPA Society, and the Planned Giving Design Center Editorial Board. Mr. Batson was previously employed at Capin Crouse LLP, Certified Public Accountants, a leading provider of accounting and consulting services to non-profit organizations. He is a graduate of Asbury College (B.A. in Computer Science) and Indiana University (MBA in Accounting).


Charitable Remainder Trusts and the "Simplified Method" for Reporting the Section 1411 Net Investment Income Tax

Tuesday, March 4, 2014

In 2010, Congress enacted the Health Care and Education Reconciliation Act of 2010 creating new IRC § 1411, which imposes a 3.8% surtax on the net investment income of individuals, estates, and trusts. In December 2012, the IRS issued proposed regulations that included a method (the Simplified Method) for charitable remainder trust (CRT) trustees to capture and report net investment income to the trust's non-charitable income beneficiaries. Final regulations issued in December 2013 took a different approach, but in new proposed regulations issued at the same time, the Simplified Method was retained as an alternative election.

The Simplified Method works as a complement to the pre-existing "four-tier" structure used by CRTs for income tax reporting. Under the Simplified Method, all net investment income (NII) received after December 31, 2012 is aggregated on a cumulative basis and distributed before excluded income. A trustee should consider electing the Simplified Method when the trust's income beneficiaries do not meet the applicable modified adjusted gross income threshold or when the trust has realized or realizable capital losses coupled with a short expected remaining term.

Six Ways to Use CRTs with Small Business Owners

Thursday, October 11, 2007

According to IRS statistics, small businesses represent nearly one-third of the value of affluent decedents' estates. CRT planning for small business owners is a critical capability for any gift planning shop. This article describes several CRT options that benefit the small business owner by increasing lifetime cash flow, increasing cash flow and business control to the next generation, increasing employee benefits, and increasing charitable gifts.