Cleint is 67 years old and wants to give 1 million to a couple of charities.
The 1 million sits in his IRA
He wants to transfer the IRA directly over to a "charitable unit trust" so he can have the option to name the charities instide the trust and add some more charities later. The CRUT would send him income of 5-6% for life.
a. would the transfer of his 1 million IRA to the CRUT be taxed to him on a 1099 for the 1 million?
b. or would it not be taxed since he transferred the IRA directly over to the charity?
c. would his income be taxed from the CRUT?
d. would he still receive a tax deduction of 50% for 5yrs?
Please, any help you can would be appreciated.