Charitable Remainder Trusts and Preparing Form 5227 (Completed)

Date: Wednesday, March 17, 2021
Instructor: Steven G. Siegel
Begin Time:  9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC
2 hours Estate Planning for CFP

Understand How CRTs Work and Preparing Form 5227, The Split-Interest Trust Return

With the political risk of increasing income tax rates on the wealthiest taxpayers, client interest is growing in using charitable remainder trusts as a planning device not only to benefit charity, but to also reduce income and transfer taxes, especially when a taxpayer has appreciated property. Important rules involving income, gift and estate taxation may need to be addressed. When such a trust is created, it becomes necessary to prepare and file Form 5227, Split-Interest Trust Return to report the income and distributions of the trust, as well as to advise the IRS of the trust's ongoing performance.

This timely and helpful two-hour CPE webinar, presented by noted estates and trusts practitioner, author and educator Steven G. Siegel, J.D., LL.M, will arm you with knowledge and seasoned guidance to help you understand how charitable remainder trusts work and how to manage the compliance requirements in reporting to the IRS with Form 5227.

Join Mr. Siegel as he offers helpful tips and practical suggestions to give you and your staff a strong understanding of how to advise clients in this important area.

Who Should Attend
This course is essential for CPAs, CFPs, enrolled agents, estate planners, tax attorneys and other professionals who advise clients on tax, retirement and estate planning, and other wealth management matters.

Topics Covered

  • Charitable Remainder Trusts: General Description and Requirements - Charitable Remainder Annuity Trust - Charitable Remainder Unitrust
  • Availability of an Income Tax Deduction
  • Availability of an Estate and Gift Tax Deduction
  • The Trust as a Tax Exempt Entity
  • How Income is Taxed to the Income Beneficiary
  • Planning Opportunities with Charitable Remainder Trusts
  • Form 5227 Filing Requirements
  • Page 1 — Identification Information
  • Page 1 — Reporting Ordinary Income, Capital Gains and Losses, Nontaxable Income and Deductions
  • Page 2 — Schedule of Distributable Income; Description of Distributions of Principal and Income
  • Page 3 — Balance Sheet
  • Page 4 — Determine the Amount for Required Distributions
  • Page 5 — Answer Questions Addressing Excise Tax Exposure
  • Page 6 — Answer Various Questions about the Type of Trust Reported; Signatures
  • Page 7 — Schedule A, Distributions of Income to and Taxation of Beneficiaries

Learning Objectives

  • Describe what Charitable Remainder Trusts are and how they are used
  • Explain the tax-exempt nature of CRTs
  • Properly complete Form 5227, Split-Interest Trust Return


Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic knowledge of wealth transfer taxation concepts.

Advance Preparation

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