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The Service has ruled privately in two companion rulings that a husband and wife can terminate a 10% net income with makeup provision charitable remainder unitrust by selling their income interests to the charitable remainderman for an amount equal to the present value of their remaining actuarial income interests and that such sale will not be deemed a prohibited act of self-dealing. More
ACGA Lowers Immedidate and Deferred Gift Annuity Rates
At its April 2, 2008 meeting, the ACGA Rates Committee has recommended and the ACGA board approved a new, lower schedule of gift annuity rates for immediate gift annuities, effective on July 1, 2008. In addition, the deferred gift annuity rates which became effective on July 1, 2006 will also be lower. More
Service Rules on CRT Trustee's Discretion in Allocating Portion of Unitrust Amount
In two recently issued private letter rulings, the Service has held that a special independent trustee of a charitable remainder unitrust in its sole discretion can allocate a portion of the annual unitrust amount to any of the trust's income recipients and any organization qualified under sections 170(c), 2055(a), and 2522(a). In addition, the trustor will retain the power to substitute the charitable remainderman, provided that at least one-third of the remainder interest is distributed to public charities, and will retain the power to substitute the special independent trustee. More