Serving as trustee of your own Charitable Remainder Trust
Ever thought of naming yourself as trustee of your own charitable remainder trust?
If so, you are not alone. According to a recent IRS Statistics of Income Bulletin, nearly one in three charitable remainder trusts name the trust
grantor or income beneficiary as the trustee.
If you are eligible to serve as trustee, you can:
1. Take control of your CRT
2. Save money on trustee fees
3. Direct trust investments or hire your own investment manager
4. Handle trust distributions and pay trust expenses yourself
Can I name myself as Trustee?
Yes, in most cases you can name yourself (and/or spouse) as trustee. As a matter of fact, according to a recent IRS Statistics of Income Bulletin, trust grantors or beneficiaries were the most common listed trustee of charitable remainder trusts. Most CRT documents grant trustmakers power to replace the trustee for any reason at any time. Self trustee arrangements are supported legally and can be quite advantageous.
Can I be Trustee and handle the trust invesments?
Trustees are required to invest and manage trust assets in a prudent manner (UPIA). Trustees are NOT required to hire a trust company to invest trust assets. Trustees can hire professional investment managers of their choice. Trustees may also invest trust assets by using discount brokerage services such as Fidelity, Schwab, or Ameritrade.
If I am trustee, who will handle the trust accounting duties?
CRT self trustees are highly encouraged to employ an independant CRT administration service to handle the transactional accounting duties and the preparation of annual tax information returns for the trust. These duties should be performed by a third party administration company, or a qualified tax preparer. Fees for this service can be paid by the trustee out of trust funds.
For more information or help with naming yourself as trustee of your own charitable remainder trust, please call CRTPro at 800-422-3316.