Charitable Remainder Trusts and Preparing Form 5227

Author: Steven G. Siegel

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

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 course, 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.

Publication Date: June 2023

Designed For
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
• Explain how to properly complete Form 5227, Split-Interest Trust Return

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic knowledge of wealth transfer taxation concepts.

Advance Preparation
None