Tax Correspondence to IRS: IRS and Treasury Should Hold Section 2511(c) Inapplicable to Transfers to Qualified Charitable Remainder Trusts

Conrad Teitell, counsel to the American Counsel on Gift Annuities, wrote a correspondence to the IRS in response to Notice 2010-19.  The correspondence requests that the IRS and Treasury issue a Notice explaining that IRC Section 2511(c) is inapplicable to transfers to qualified charitable remainder trusts.  It states that because charitable remainder trusts are not grantor trusts, section 2511(c) could apply to charitable remainder trusts.  Nevertheless, the correspondence argues that though 2511(c) was enacted to hinder income shifting, shifting is not possible with charitable remainder trusts. 

See also Charitable Planning Group Criticizes Guidance Clarifying Treatment of Transfers in Trust, 2010 TNT 26-12, February 9, 2010.

Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.