IRS Legal Memoranda

Nov
06
2006

 

Partial Assignment of Decedent's IRA to Charities Results in Gross Income Under Trust and No Distribution Deduction

In a legal memorandum, the IRS has advised that a partial assignment of a decedent's IRA by a revocable trust that is named its beneficiary to charities in satisfaction of pecuniary legacies results in gross income to the trust under section 691(a)(2). Further, because the trust does not require the payment of such amounts from gross income, the trust is not entitled to a deduction under section 642(c)(1) for such assignments.  MORE »
Aug
08
2006

 

How to Abuse a Charitable Remainder Trust

In an internal legal memorandum, the IRS has concluded that a trust is not a charitable remainder unitrust because the trustor transferred debt-encumbered property to the trust in violation of the grantor trust rules and otherwise used the trust as a personal checking account for the benefit of himself and family members in violation of the rule against prohibited payments.  MORE »
Jan
31
2005

 

IRS Lays Out Standards for International Grantmaking by Charities

In a legal memorandum, the IRS has set out standards dictating how U.S. charities must conduct their international grantmaking activities. The rules are similar to those governing domestic grantmaking.  MORE »