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Unitrust gift - who is the donor?

  • 1.  Unitrust gift - who is the donor?

    Posted 08-10-2021 05:41 PM
    Apologies because I'm sure this has been asked before, but I can't remember how to search the archives. 

    We just received an estate gift from a unitrust and I'm not sure how to record it.  Is the donor the unitrust or the individuals who set it up? 

    Thank you!

    ------------------------------
    Karen Warr, GPC
    Director of Development Operations
    LifeWorks NW
    karen.warr@lifeworksnw.org
    ------------------------------


  • 2.  RE: Unitrust gift - who is the donor?

    Posted 08-10-2021 05:52 PM
    We're you named an irrevocable beneficiary in the original trust document?

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard





  • 3.  RE: Unitrust gift - who is the donor?

    Posted 08-10-2021 06:12 PM
    I should clarify!

    A CRUT is an irrevocable trust in which the donor claims a deduction at the time of creation.  If you are an irrevocable beneficiary, you should record a gift THEN - when the trust was created.  It is a gift from the individual.

    If the donor reserved the right to change charitable beneficiaries, then no gift is counted when the trust is formed, yet the donor still gets a deduction.

    In either case, the donor is the individual unless the proceeds went to another foundation or charity - who subsequently decided to make a gift to you of their own free will.

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard





  • 4.  RE: Unitrust gift - who is the donor?

    Posted 08-10-2021 06:10 PM
    Thanks John - the letter says that we were named as a charitable remainderman in the trust, dated in 1996.  I don't have the original trust document.  Do I need to contact the company that issued the check?

    Sent from my iPhone





  • 5.  RE: Unitrust gift - who is the donor?

    Posted 08-10-2021 06:14 PM
    I think I just answered your question while you were sending this!

    You should have recorded a gift in 1996.  So double check and make sure that didn't happen 25 years ago!

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard





  • 6.  RE: Unitrust gift - who is the donor?

    Posted 08-10-2021 06:17 PM
    I will do that - thank you!  This is very helpful.

    Sent from my iPhone





  • 7.  RE: Unitrust gift - who is the donor?

    Posted 08-10-2021 06:20 PM
    And don't look for an amount similar to what you received!  The gift amount 25 years ago would have been (probably) a ton less!

    But if you do not find anything "interesting," I would record what you just received much like you would a realized bequest.  But DO NOT issue a receipt.  The deduction happened 25 years ago.  I would, though, send a nice letter of thanks and confirmation to the family.

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard