Tax issues may make dividing a CRT difficult

Description

Abstract: When dividing assets in divorce, charitable remainder trusts (CRTs) usually are split 50-50 into two separate trusts. Tax issues, however, can make such divisions trickier than they might first appear. This article explains the tax implications of two types of “split-interest” trusts: charitable remainder annuity trusts (CRATs) and charitable remainder unitrusts (CRUTs). It also discusses whether divorcing spouses might be disqualified persons with respect to their original trust.