CRT ADMINISTRATION
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.
Even well-drafted CRTs can develop problems if they are not administered properly.
CRTs are subject to distinct rules under Section 664 of the Internal Revenue Code. They must also track income and distributions under a four-tier accounting system, prepare annual tax filings, and comply with rules designed to protect the charitable remainder interest.
Many CRTs that are not overseen by someone experienced with charitable remainder trusts show reporting, accounting, or compliance issues. Problems can also arise when a professional is involved but does not routinely administer CRTs.
Our Administration Services
CRT Experts provides CRT administration support for select trusts that require careful reporting, four-tier accounting, tax return preparation, and compliance review.
Our administration services include:
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.
Tax reporting
Preparation of federal and state charitable trust tax returns, including Form 5227 and related beneficiary reporting.
Four-tier CRT accounting
Tracking trust income, gains, distributions, and expenses under the CRT four-tier accounting rules.
Annual reporting
Preparation of an annual trust report summarizing trust activity, valuation history, distributions, and four-tier accounting information.
Advisor coordination
Coordination with the trustee, investment advisor, CPA, attorney, and other members of the client’s advisor team as needed.
Administration Fees
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.
Fees are based on trust size, complexity, and the services required.
To discuss CRT administration support, call 703-520-2275 or email experts@crt-experts.com.
Although professional administration is not required, experienced CRT administration can help protect trustees, income beneficiaries, advisors, and charitable remainder beneficiaries.