<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=us-ascii">
<meta name="Generator" content="Microsoft Word 14 (filtered medium)">
<style><!--
/* Font Definitions */
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:11.0pt;
font-family:"Calibri","sans-serif";}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
span.EmailStyle17
{mso-style-type:personal;
font-family:"Calibri","sans-serif";
color:windowtext;}
span.EmailStyle18
{mso-style-type:personal-reply;
font-family:"Calibri","sans-serif";
color:#1F497D;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang="EN-US" link="blue" vlink="purple">
<div class="WordSection1">
<p class="MsoNormal"><span style="color:#1F497D">Jane,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"> Typically the client contributes his or her income interest in the CRUT to the charitable gift annuity. The CRUT can then terminate with the remainder interest distributed to the charity. The
charitable gift annuity is not funded with the full value of the CRUT, but only the current value of the retained income interest. Many charities can illustrate this transaction for the client.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<font color="#777777" size="4"><span style="FONT-FAMILY: 'Calibri','sans-serif'"><font size="3"><font color="#000000"><o:p>
<p style="MARGIN: 0in 0in 6pt"><span style="FONT-FAMILY: 'Calibri','sans-serif'">Amy C. Lewis, Attorney</span></p>
<p style="MARGIN: 6pt 0in 0pt"><span style="mso-no-proof: yes"><v:shapetype id="_x0000_t75" coordsize="21600,21600" o:spt="75" o:preferrelative="t" path="m@4@5l@4@11@9@11@9@5xe" filled="f" stroked="f"><v:stroke joinstyle="miter"></v:stroke><v:formulas><v:f eqn="if lineDrawn pixelLineWidth 0"></v:f><v:f eqn="sum @0 1 0"></v:f><v:f eqn="sum 0 0 @1"></v:f><v:f eqn="prod @2 1 2"></v:f><v:f eqn="prod @3 21600 pixelWidth"></v:f><v:f eqn="prod @3 21600 pixelHeight"></v:f><v:f eqn="sum @0 0 1"></v:f><v:f eqn="prod @6 1 2"></v:f><v:f eqn="prod @7 21600 pixelWidth"></v:f><v:f eqn="sum @8 21600 0"></v:f><v:f eqn="prod @7 21600 pixelHeight"></v:f><v:f eqn="sum @10 21600 0"></v:f></v:formulas><v:path o:extrusionok="f" gradientshapeok="t" o:connecttype="rect"></v:path><o:lock v:ext="edit" aspectratio="t"></o:lock></v:shapetype><v:shape style="WIDTH: 220px; HEIGHT: 99px; VISIBILITY: visible; mso-wrap-style: square" id="Picture_x0020_16" alt="http://www.eisenhowerlaw.com/sites/www.eisenhowerlaw.com/themes/eisenhower/email_logo.png" type="#_x0000_t75" o:spid="_x0000_i1025"><v:imagedata o:title="EC_Logo_color" src="http://www.eisenhowerlaw.com/sites/www.eisenhowerlaw.com/themes/eisenhower/email_logo.png"><img border="0" hspace="0" src="cid:100logo55e14a"></v:imagedata></v:shape></span><span style="FONT-FAMILY: 'Calibri','sans-serif'; COLOR: #c00000; FONT-SIZE: 3pt; mso-bidi-font-family: Calibri"><o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt"><span><font color="#c00000"><font style="FONT-SIZE: 10pt">ESTATE PLANNING & PROBATE</font></font></span></p>
<p style="MARGIN-TOP: 0in"><span style="FONT-FAMILY: 'Calibri','sans-serif'; FONT-SIZE: 11pt">1200 Wells Fargo Plaza | 1201 Pacific Avenue | Tacoma, WA 98402<br>
phone 253.572.4500 | fax 253.272.5732 | </span><a href="http://www.eisenhowerlaw.com/"><span style="FONT-FAMILY: 'Calibri','sans-serif'; COLOR: #c00000; FONT-SIZE: 11pt; TEXT-DECORATION: none; text-underline: none">www.eisenhowerlaw.com</span></a></o:p></font></font></span></font></p>
<br>
<div>
<div style="border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Jane Bitz<br>
<b>Sent:</b> Wednesday, January 07, 2015 10:33 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv<br>
<b>Subject:</b> [WSBAPT] Charitable Remainder Trust Question-Referral<o:p></o:p></span></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">My client and her husband set up a CRUT in 2005 funded with $150,000 to benefit two charities upon the death of both spouses.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">She is the surviving Trustee and has asked me if she can invest the principal of the Trust into charitable gift annuities with each of the organizations. This will serve two purposes: 1) she will get income that she is not receiving from
the Unitrust because the costs of the Trust (accounting fees + investment fees) eat up a lot of the annual income and 2) simplify distribution upon her death to each of the charities. It sounds like she is asking to dissolve the trust by immediate gifts to
the charities. Is this allowed under the IRS rules?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">If she cannot dissolve the Trust, is there any problem with the Trust deciding to invest in charitable gift annuities? This looks like it might result in “double dipping” on the charitable deduction, but she would not take any additional
charitable deduction for the investment in the annuities on her personal taxes. <o:p>
</o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Is there an expert in this area who might be able to answer these questions?
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thanks.<o:p></o:p></p>
<p class="MsoNormal">Jane.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal" style="background:white"><span style="font-size:10.0pt;color:black">Jane G Bitz<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="font-size:10.0pt;color:black">Attorney at Law, PLLC<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="font-size:10.0pt;color:black">12209 E Mission, Suite 5<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="font-size:10.0pt;color:black">Spokane Valley WA 99206-4824<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="font-size:10.0pt;color:black">(509) 927-9700; FAX (509) 777-1800<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white"><span style="font-size:10.0pt;color:black"><a href="mailto:jane@jbitzlaw.com">jane@jbitzlaw.com</a><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<br>
<div align="left"><font color="black" size="2">
<div style="BORDER-BOTTOM: #7f7f7f 1.5pt solid; BORDER-LEFT: #7f7f7f 1.5pt solid; PADDING-BOTTOM: 1pt; PADDING-LEFT: 4pt; PADDING-RIGHT: 4pt; BORDER-TOP: #7f7f7f 1.5pt solid; BORDER-RIGHT: #7f7f7f 1.5pt solid; PADDING-TOP: 1pt">
<p style="BORDER-BOTTOM: medium none; BORDER-LEFT: medium none; PADDING-BOTTOM: 0in; LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; BORDER-TOP: medium none; BORDER-RIGHT: medium none; PADDING-TOP: 0in; mso-border-alt: solid #7F7F7F 1.5pt; mso-padding-alt: 1.0pt 4.0pt 1.0pt 4.0pt" class="MsoNormal">
<span style="FONT-FAMILY: 'Times New Roman'; COLOR: gray; FONT-SIZE: 10pt"><o:p><font style="FONT-SIZE: 9pt"> </font></o:p></span><font style="FONT-SIZE: 9pt"><font style="FONT-SIZE: 9pt"><span style="FONT-FAMILY: 'Times New Roman'; COLOR: gray; FONT-SIZE: 10pt"><font style="FONT-SIZE: 9pt"><font style="FONT-SIZE: 9pt">IMPORTANT/CONFIDENTIAL</font>:</font>
<font style="FONT-SIZE: 9pt">This e-mail message (and any attachments accompanying it) may contain confidential information, including information protected by attorney-client privilege. The information is intended only for the use of the intended recipient(s).
Delivery of this message to anyone other than the intended recipient(s) is not intended to waive any privilege or otherwise detract from the confidentiality of the message. If you are not the intended recipient, or if this message has been addressed to you
in error, do not read, disclose, reproduce, distribute, disseminate or otherwise use this transmission. Rather,<em> please promptly notify the sender by reply e-mail, and then destroy all copies of the message and its attachments, if any.</em></font></span></font></font><span style="FONT-FAMILY: 'Times New Roman'; COLOR: gray"><font style="FONT-SIZE: 9pt"><font style="FONT-SIZE: 9pt"><font style="FONT-SIZE: 9pt"> </font></font></font></span></p>
</div>
</font></div>
<br>
</body>
</html>