Planned Giving Insights and Information

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PG Calc Insights: IRS Releases Latest Statistics on Planned Gifts

Posted by Bill Laskin on April 22, 2013
The IRS recently published its latest statistics on split interest trusts - charitable remainder trusts (CRTs), charitable lead trusts (CLTs), and pooled income funds (PIFs). The statistics are based on the information reported on Form 5227s filed during calendar year 2011, so they largely reflect 2010 activity. The IRS also has released a paper that analyzes these statistics and provides substantial additional detail about these gift plans.  

You can see the statistics and the papers for yourself by going to the IRS site. The rest of this post highlights some of the very interesting information I have gleaned from there.

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Topics: charitable lead trusts, charitable remainder annuity trusts, IRS statistics on planned gifts, pooled income funds

How the Medicare Surtax Affects Planned Gifts

Posted by Winston Jones on December 14, 2012

For upper-income taxpayers, income from planned gifts is subject to the new 3.8% Medicare surtax which takes effect January 1, 2013. The IRS has just issued interim guidance on the new tax. Here are some details on how the surtax will apply to planned giving.

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Topics: charitable lead trusts, charitable remainder trust, pooled income fund, retained life estate, Medicare Surtax

IRS Split Interest Trust Statistics (based on 5227s filed in 2011)

Posted by Bill Laskin on November 14, 2012
The IRS has released statistics for charitable remainder unitrusts (CRUT), charitable remainder annuity trusts (CRAT), charitable lead trusts (CLT), and pooled income funds (PIF) based on Form 5227s filed in 2011. This means that the information largely reflects values as of the end of 2010. Some pertinent statistics are summarized in the table below, including the change of each value from 2010’s 5227s to 2011’s 5227s.

Item

Total

Size of end-of-year book value of total assets (in $1,000s)

Under $500,000

$500,000 under $1,000,000

$1,000,000 under $3,000,000

$3,000,000 under $10,000,000

$10,000,000 or more

 

(1)

(2)

(3)

(4)

(5)

(6)

CRUT Number of returns

93,828

67,211

13,897

9,366

2,642

713

Change from 2010

0.00%

0.99%

-3.70%

-0.97%

-1.12%

-0.28%

CRUT Total net assets

$86,901,148

$11,668,938

$9,713,830

$14,870,406

$13,180,605

$37,467,369

Change from 2010

-5.11%

0.17%

-3.44%

-2.01%

-1.03%

-9.46%

 

 

 

 

 

 

 

CRAT Number of returns

15,862

12,854

1,652

1,019

275

62

Change from 2010

-6.35%

-5.93%

-10.94%

-5.03%

-3.17%

1.64%

CRAT Total net assets

$7,136,591

$1,411,278

$1,183,074

$1,646,130

$1,357,376

$1,538,732

Change from 2010

-4.78%

-2.38%

-11.29%

-3.00%

-3.23%

-4.77%

 

 

 

 

 

 

 

CLT Number of returns

6,617

2,864

1,436

1,306

706

305

Change from 2010

0.12%

-4.25%

9.28%

-5.50%

12.24%

4.10%

CLT Total net assets

$20,945,036

$395,042

$984,235

$2,159,982

$3,726,160

$13,679,616

Change from 2010

8.31%

-9.03%

9.01%

-3.38%

17.51%

8.61%

 

 

 

 

 

 

 

PIF Number of returns

1,402

1,070

116

121

71

24

Change from 2010

-0.57%

-0.83%

-1.69%

-3.20%

12.70%

-4.00%

PIF Total net assets

$1,311,456

$127,767

$82,384

$192,575

$365,321

$543,408

Change from 2010

2.68%

4.41%

7.96%

-4.64%

8.29%

0.78%

 Some observations.

  1. Charitable lead trusts are the only gift type of the four that increased in number from 2010 to 2011 and that increase was a miniscule 0.12%.  In essence, the number of CRUTs, CLTs, and PIFs was unchanged, while the number of CRATs shrank a non-negligible 6.35%.

  2. Total net assets held by CLTs increased over 8% from 2010 to 2011, while total net assets of CRATs and CRUTs each slipped about 5% during the same period. This continues a trend we’ve seen in the assets held by CLTs and CRTs for the last couple years.  Surprisingly, PIF total net assets reversed its recent annual declines, increasing 2.68%.

  3. CLTs with a net asset value over $10 million account for over 65% of the total net asset value of all CLTs.  In contrast, this cohort of CRUTs accounts for 43% of all CRUT net asset value, this cohort of CRATs accounts for 22% of all CRAT net asset value, and this cohort of PIFs accounts for 41% of all PIF net asset value.  Although nearly 2/3s of all CLTs have a net asset value under $1 million, the total net asset value of CLTs is concentrated in very large trusts more so than with the other gift types.
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Topics: charitable lead trusts, IRS stats on planned gifts, charitable remainder unitrusts, charitable remainder annuity trusts, pooled income funds

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