CRT Sellers Beware

The Internal Revenue Service has issued a warning to certain sellers of charitable remainder income interests and to their advisors. In Notice 2008-99 (released on Oct. 31, 2008), the IRS has identified as a transaction of interest a certain type of transaction involving the sale of both the income and remainder interests in a charitable remainder trust (CRT) to a third party. Indeed, the notice requires

The Internal Revenue Service has issued a warning to certain sellers of charitable remainder income interests — and to their advisors.

In Notice 2008-99 (released on Oct. 31, 2008), the IRS has identified as a “transaction of interest” a certain type of transaction involving the sale of both the income and remainder interests in a charitable remainder trust (CRT) to a third party.

Indeed, the notice requires disclosure by the income beneficiary and a

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