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The Trust3 has a term of 20 years running from the date of
Christiansen’s death, and the Trust agreement provides for
payments to the Foundation of 7 percent of the Trust’s initial
corpus. Any remaining assets in the Trust at the end of 20
years will go to Hamilton; if she dies before then, they will go
to the Foundation. Hamilton and her husband, plus a family
friend, are the Foundation’s directors, and by early 2002, the
Foundation was qualified as a charitable organization under
section 501(c)(3).
Hamilton has contributed some of her own money to the
Foundation and it has already begun its work, distributing a
total of almost $22,000 through the end of 2004, including a
donation for playground equipment to a local city park, and a
grant to help buy food and supplies for the “Gathering and
Healing of Nations,” a series of bipartisan conferences sponsored
3 The Trust is a “charitable lead annuity trust.” A
charitable trust is one whose beneficiaries are charities. Sec.
2522(a)(2). A charitable lead trust is a charitable trust whose
income beneficiaries are charities, but whose remaindermen are
not. Sec. 25.2702-1(c)(5), Gift Tax Regs. And a charitable lead
annuity trust is a charitable lead trust whose charitable income
beneficiary is guaranteed an annuity fixed as a percentage of the
trust’s initial assets and paid for a term of years. Sec.
26.2642-3(b), GST Tax Regs.; sec. 25.2522(c)-3(c)(2)(vi), Gift
Tax Regs.
Unless otherwise noted, all section references are to the
Internal Revenue Code and regulations, and Rule references are to
the Tax Court Rules of Practice and Procedure.
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Last modified: March 27, 2008