Swapping Assets between an IRA and a CRUT

Submitted by William Dorriety on Mon, 2009-09-21 20:51

I have a client who has an IRA and a Charitable Remainder Uni-Trust. Is it possible to swap assets ? (example client contributes IRA assets to the CRUT and receive assets currently owned by the CRUT- mutual funds, stocks, cash)

Thanks

Greg Dorriety



Submitted by mk foss on Mon, 2009-09-21 21:48

Any swapping would be taxable to the CRUT and ultimately taxable to the CRUT beneficiary.

The swapping could be a prohibited transaction that could disqualify the IRA.

A CRUT can accept later additions after it is set up. The owner could take a taxable distribution form the IRA, then contribute those assets to the CRUT and get an income tax deduction for part of the value. That solution would only be attractive if there is some IRA asset that they feel is very important to be held within the CRUT.



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