Although a charitable remainder trust is not required to have a professional administrator, CRT administration is highly specialized. The tax, accounting, reporting, and compliance rules that apply to CRTs are different from those that apply to most other trusts and entities. 

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That matters because even well-drafted CRTs can develop problems if they are not administered properly.

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CRTs are subject to specialized rules under Section 664 of the Internal Revenue Code. They must also track income and distributions under the four-tier accounting system, prepare annual tax filings, and comply with rules designed to protect the charitable remainder interest.

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Many CRTs that are not overseen by a CRT administration specialist show reporting, accounting, or compliance issues. Problems can also arise when a professional is involved but does not regularly work with charitable remainder trusts.​

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Our Administration Services

 

CRT Experts provides specialized CRT administration support for select trusts, including complex CRTs that require focused reporting, accounting, and compliance expertise.

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Our administration services include:

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Compliance support
Ongoing support designed to help trustees avoid common CRT compliance issues, including self-dealing concerns, improper distributions, step-transaction issues, and distributable net income calculation errors.

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Tax reporting
Preparation of federal and state charitable trust tax returns, including Form 5227 and related beneficiary reporting.

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Four-tier CRT accounting
Tracking trust income, gains, distributions, and expenses under the CRT four-tier accounting rules.

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Annual reporting
Preparation of an annual trust report summarizing trust activity, valuation history, distributions, and four-tier accounting information.

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Advisor coordination
Coordination with the trustee, investment advisor, CPA, attorney, and other members of the client’s advisor team as needed.

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Administration for Complex CRTs

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CRT administration is not one-size-fits-all. The appropriate level of support depends on the trust terms, asset composition, payout structure, beneficiary circumstances, reporting history, and the trustee’s needs.

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CRT Experts has experience with standard CRUTs and CRATs, NIMCRUTs, Flip CRUTs, income-deferral structures, trusts with multiple income beneficiaries, and CRTs holding closely held business interests or other illiquid assets.

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Administration Fees

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Our administration services are competitively priced based on trust size, complexity, and the scope of services required.

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To discuss CRT administration support, call 703-520-2275 or email experts@crt-experts.com​​.