Attorney Urges Withdrawal of CRAT, CRUT Safe Harbor Guidance

Attorney Urges Withdrawal of CRAT, CRUT Safe Harbor Guidance

News story posted in Revenue Procedures on 6 June 2005| comments
audience: National Publication | last updated: 18 May 2011


Jeffrey McGhee of the California Baptist Foundation has urged Treasury to withdraw Rev. Proc. 2005-24, arguing that its requirements for disregarding a surviving spouse's right of election will complicate the creation and administration of charitable remainder trusts.
Full Text:

From: Jeff McGhee []
Sent: Friday, May 27, 2005 7:20 PM
Subject: Revenue Procedure 2005-24

Dear Sirs and Madams:

I'm writing to ask your support in withdrawal of Rev. Proc. 2005-24 for further study.

I work with donors everyday -- many of whom are grantors of charitable remainder trusts. These generous people are desirous of the strategy that a CRT can provide -- providing them retirement income with the assurance that their favorite ministries or missions will ultimately receive a substantial benefit.

It seems to me that this is not an issue that has been subject to abuse. In fact, I would speculate that very few CRTs ever become the subject of a spousal right of election.

The actions and penalties required of the Rev. Proc. will complicate creation and administration of CRTs to the degree that numbers of people will opt to not participate in this charitable endeavor and/or many well meaning, honest and generous citizens will be unjustly injured thereby.

I believe that the solutions to the issue of spousal right to election proposed in the American Council of Gift Annuity's letter offer a more simple solution to a truly rare occurrance.


Jeffrey D. McGhee

Jeffrey D. McGhee, J.D.
Estate Planning Attorney
Ph. 559-322-1001/888-607-7494
California Baptist Foundation
7120 N. Whitney, Ste. 105
Fresno, CA 93720

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