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Subject:  Re: Protected trust Date:  6/14/1998  11:19 AM
Author:  KATinChicagoland Number:  3786 of 87993

While it's reasonable of Pixy to raise the question of using a charitable remainder trust, I believe this vehicle is unsuitable for the planned use. For one thing, the property must be placed in the hands of a trustee who makes investment decisions based on benefits to both the individual beneficiary and the charitable beneficiary -- which means the trustee could feel compelled to sell the property and reinvest in an asset with greater appreciation potential. And then there's the fact that these trusts are subject to prohibited transaction rules. You'll incur penalties if you make personal use of property held by such a trust.

Kaye Thomas, author
Fairmark Press Tax Guide for Investors
Includes a new guide to estimated tax

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