General Discussion
In reply to the discussion: Bloomberg News: Romney ‘rented’ Mormon church’s exemption to defer taxes for 15 years [View all]Ms. Toad
(34,117 posts)There would not be much to see in the final year - although there may be some information that could be pieced together from his last two returns about how large the trust was and how much he took from the trust during its life.
It is intended to shelter large capital gains, and spread income from sales of appreciated property over several years in exchange for what is left at the end of the term going to charity.
My parents used one in a non-traditional way - by donating their active (and greatly appreciated) farmland to a CRUT, and letting the trust sell it, which spreads the capital gains on any portion which they receive from the sale over the life of the trust. Their intent was to use the proceeds of the sale to fund their annual charitable donations without having to first pay taxes on the gains - they were required to take 5% of the value of the trust (I'll have to check that - I know the figure was 5%, but I'm not sure whether it was 5% of the initial value or of the balance each year), but otherwise all of it went to charity. Charitable donations may also be made during the life of the trust (which was my parents' intent, and how they used it)
The norm is to take the maximum amount permitted each year (personally) - spreading your gains out over the years of the trust, then whatever is left in the trust at the end goes to charity. Sounds like there wasn't as much left as expected.