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CRUT recording question

  • 1.  CRUT recording question

    Posted 09-25-2020 11:08 AM
    Looking for some guidance here with a CRUT.

    We were recently notified that we are the remainder beneficary of a trust and upon some investigation found that the husband of an alumna created two trusts to be funded with life insurance payouts unpon his death. Then, upon the death of his wife, those two trusts were combined and made into 3 new trusts (on for each child). One of those trusts was a CRUT for which we are a percentage beneficary, but we will not receive our portion until the death of  our alumna's son and daughter-in-law.

    We know that we are an irrevocable beneficary and we know the amount the CRUT was originally funded with in 2015, but is there anything we can record since the funder of the CRUT appears to be the estate of our alumna's husband.

    Am I thinking about this correctly and is there anything to record?

    Thanks for any answers.

    --
    vertical black pipe, a design featureDan Snyder 
    Assistant Director of Advancement Services 
    Office of Institutional Advancement 

    Bennington College 

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  • 2.  RE: CRUT recording question

    Posted 09-25-2020 11:26 AM
    As an irrevocable beneficiary, and assuming you know your percentage, per CASE you should record a planned gift (outright) now for that pro-rata portion of the trust.

    I would use the value as of the date you became an irrevocable beneficiary.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: CRUT recording question

    Posted 09-25-2020 02:18 PM
    Many thanks for the Q and A regarding a CRUT gift.

    For Ellucian Advance users, I am interested in connecting with others who are willing to share or discuss the following:

    • your gift processing data entry policies & procedures (P&P) for planned gifts
    • If you use any of the Proposal Planned Giving applications, your data entry P&P for proposals
    • Other than those in Gift Processing (Prospect Management, Stewardship, development officers), how do you use Advance to manage planned giving related records?​
    Please let me know if you are interested in a group discussion specific to the Advance system.  I will gladly coordinate.

    Viv

    Viviana Ramirez
    Director of Prospect Management
    Office of Philanthropy
    viviana_ramirez@rush.edu




    1. 4.  RE: CRUT recording question

      Posted 09-25-2020 02:29 PM
      Viviana, I am reposting your email with a more descriptive subject line.

      John

      John H. Taylor
      Principal
      John H. Taylor Consulting, LLC
      2604 Sevier St.
      Durham, NC   27705
      919.816.5903 (cell/text)

      Serving the Advancement Community Since 1987







    2. 5.  RE: CRUT recording question

      Posted 15 days ago
      John,

      Do you record the gift on the record of the trustor of the CRUT?  In past positions, we used the planned giving module and entered the gift when we were properly notified and then recorded the gift as fulfilled upon receipt all on the donors (trustor's) record.  Historically, my current organization creates a donor record for the CRUT itself  upon receipt of the gift.  Much of the time it was because they were unaware of the existence of the gift until it was received and, I guess, did not what to place it on the record of the deceased donor.  Many, many people have managed the database, so lots of varying practices.  I do not have a ton of experience with these types of gifts and am wondering if I am missing something.  Can you offer any guidance on recording the receipt of the gift?

      Thank you,

      Ann Key
      Haggai International
      Peachtree Corners, GA

      ------------------------------
      Ann Key
      Director of Advancement Services
      Haggai International
      annk@haggai-international.org
      ------------------------------



    3. 6.  RE: CRUT recording question

      Posted 15 days ago
      The CRUT is not a donor.  It is a financial vehicle established by an individual.  Therefore, the gift goes on the record of that individual.

      You typically only create a stand-alone record when an independent trust is created and distributions are determined by a board of some sort.  That is not the case with a CRUT.  See pages 278-279 of the CASE Global Reporting Standards.

      John


      John H. Taylor
      Principal
      John H. Taylor Consulting, LLC
      2604 Sevier St.
      Durham, NC   27705
      919.816.5903 (cell/text)

      Serving the Advancement Community Since 1987