NIMCRUT Basics: When and How to Use the Net-Income with Make-up Charitable Remainder Unitrust
April 5, 2024
Charitable Reminder Trusts (CRTs) are a powerful and flexible financial, tax, charitable and estate planning tool. NIMCRUTs are a particular powerful type of CRT that can be applied in various planning scenarios. This program will provide attendees with a review of CRTs generally as a foundation for the detailed discussion of NIMCRUTs. Then, NIMCRUTs will be defined and explained. Technical terms like: “net income,” “trust accounting income” (TAI), Uniform Principal and Income Act, make-up amount, and others concepts will be explained. What is the interaction between the unitrust amount and net income? What are the principal reasons to use a NIMCRUT? What is a “Flip-CRUT” and when might that be an appropriate tool? How are CRTs taxed? How can you use a NIMCRUT to defer distributions and tax? How can zero coupon bonds, annuities, partnerships and single member LLCs defer distributions and hence taxable income? How can grantor trust considerations affect NIMCRUT planning? When and how should you use an independent special trustee? And more! Speakers: Ted R. Batson, Jr., Partner and Tax Counsel CapinCrouse, LLP, and Martin Shenkman, Esq. *This may constitute attorney advertising. * No CPE, CLE, etc. is offered but a certificate of attendance will be provided.