Estate and Gift Tax Charitable Deductions (Portfolio 839)

Description

Tax Management Portfolio, Estate and Gift Tax Charitable Deductions, No. 839, surveys the estate tax charitable deduction allowed to a decedent’s estate by §2055 for transfers to qualifying recipients for public, charitable, religious, and other similar purposes, and the gift tax charitable deduction available to a transferor by §2522 for lifetime transfers. The discussion of the estate tax deduction includes the criteria for eligible §2055 recipients; the requirements for qualifying inter vivos and testamentary transfers; the interaction of §2055 with the §2518 qualified disclaimer; and the special rules that apply when a transfer involves property in which interests are split between charitable and noncharitable recipients. The discussion of the gift tax deduction includes the criteria for eligible §2522 recipients; the requirements for qualifying transfers; and split-interest gifts. The Portfolio also discusses the requirements for obtaining a §2106 charitable deduction for estates of nonresident non-citizen decedents. The Portfolio is an analysis of the practical and tax advantages of the deductions as well as the pitfalls of ineffective planning or no planning.

The income tax aspects of charitable contributions are considered in 863 T.M., Charitable Contributions: Income Tax Aspects. Additional aspects of charitable contributions are considered in 794 T.M., Charitable Contributions by Corporations (U.S. Income Series); 865 T.M., Charitable Remainder Trusts and Pooled Income Funds; and 866 T.M., Charitable Lead Trusts.

This Portfolio may be cited as Beckwith and Allan, 839 T.M., Estate and Gift Tax Charitable Deductions.

Table of Contents

I. Scope
II. Introduction to Estate Tax Deduction
III. Eligible Recipients – § 2055(a)
IV. Qualifying Transfers
V. Split-Interest Transfers
VI. Former Law on Split Interests and Powers of Diversion
VII. Amount Deductible
VIII. Proof to Support Deduction
IX. Disallowance of Deduction – § 2055(a)(2), (a)(3) and (e)(1)
X. Nonresident Alien Decedents – § 2106(a)(2)
XI. Introduction to Gift Tax Deduction