Traditional pooled income funds have fallen from favor because payments were limited to net dividends and interest earned during a long period of declining interest rates. But recent changes in state trust law and new IRS regulations now allow us to craft a new kind of PIF: one that distributes tax-efficient payments that can increase over time as the trustee invests for capital appreciation as well as income. We will review these recent developments, describe how to establish and administer a total return PIF, and discuss investment, fiduciary, and marketing/communications issues. Syllabus for Gift Planners code: 3.01.05
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