Administration of Charitable Trusts in Florida

Alex Espenkotter and Jennifer Facarazzo published Administration of Trusts in Florida: Charitable Trusts (Ch. 16).  Here is the introduction:

Charitable trusts are excellent vehicles for persons with philanthropic intentions to effectively give money to their favorite charitable causes while obtaining valuable tax benefits. Not to be overlooked, however, is the need for proper implementation and administration of these entities. “[F]or the estate planning attorney, [trustee,] and financial planner, a thorough study of the issues surrounding charitable… trusts is an imperative to their successful utilization.” Callister, Charitable Remainder Trusts: An Overview, 51 Tax Law. 549, 569 (1998). This chapter addresses various aspects of charitable trust formation and administration.

Initially, the discussion focuses on the numerous specific federal requirements and restrictions that must be followed and adhered to for proper administration of charitable trusts. The various types of charitable remainder trusts and charitable lead trusts are discussed in detail. Next, the chapter discusses the payment of annuity and unitrust amounts under various charitable trust arrangements. Thereafter, the availability of the charitable deduction and its computation is covered. Following that is a discussion of the income tax consequences associated with various charitable trusts. The focus then shifts to application of the private foundation rules to charitable trusts. The chapter concludes by addressing the duties and powers of trustees and the compensation for trustees and attorneys of charitable trusts. These latter two subjects are also discussed in depth in Chapters 2 and 13, respectively, of this manual. For a discussion of the modification of charitable trusts, see §8.16 of this manual.

For the entire chapter, see Administration of Trusts in Florida: Charitable Trusts (Ch. 16) (available at the Florida Bar website CLE section).

DAB