Charitable Trust Tax Administration.
Seamless administration, without changes to the advisor team.
Once a CRT is funded, we take the specialized tax work off everyone's plate. The donor's existing advisors keep doing exactly what they did before - we simply handle the trust piece and make the annual rhythm effortless for everyone involved.
We do the specialized work. Everyone else keeps their role.
Adding a CRT shouldn't mean adding work - or swapping out the people a donor already trusts. The existing advisor team stays exactly as it is. We slot in for the charitable trust piece and make it nearly invisible to everyone else.
The annual cycle, in four parts.
Form 5227 preparation & filing
The split-interest trust return. Prepared, reviewed, and typically filed by mid March - or extended when information is not timely received. State returns coordinated where required.
K-1 distribution to beneficiaries
Beneficiary statements prepared on the four-tier accounting basis required for CRTs. Sent to beneficiaries on the same schedule as the trust return.
Unitrust payment calculation
Annual revaluation, payment calculation, and coordination on timing. We clearly communicate exactly what needs to happen.
CRT investment tax-optimization
Working with the trust's investment advisor to position holdings for tax efficiency. Strong understanding of CRT taxation can meaningfully improve investment outcomes.
When we're the right administrator.
Engage us when:
- The trust is a CRUT, CRAT, or CLT
- You want tax administration from specialized experts rather than generalists unfamiliar with charitable trusts
- The donor or trustee values seamless coordination over piece-work
- The existing tax administration has not gone to plan
Look elsewhere if:
- The trust isn't a split-interest charitable trust
- You're shopping the lowest possible filing fee
- You need legal advice on trust governance - retain counsel
The annual rhythm.
November & December - Q4
Annual engagement agreement sent and agreed upon, covering the following calendar year.
January - Q1
Invoice sent based on agreed upon services for the calendar year.
February & March - Q1
Tax information requested, directly from financial advisor if applicable.
February & March - Q1
Once information is received:
- —Tax returns completed
- —K-1 delivered directly to the individual tax preparer
- —Unitrust calculations for the new year delivered to the advisor and trustee
June - Q2
Tax review of CRT investments completed to provide maximum context to make the best investment decisions possible.
Administering a charitable trust, in plain English.
01What's involved in administering a charitable trust each year?+
Each year the trust files Form 5227, we calculate the required payout to the income beneficiary, issue a K-1 that characterizes that income, and stay coordinated with the trustee and the investment advisor. It's specialized work, and it's most of what we do.
02Can you take over a trust someone else set up?+
Yes - that's a common reason people come to us. Bring us the trust instrument and the last filed return, and we'll review where things stand and tell you honestly whether we're the right fit before you commit to anything.
03Will the donor's other advisors have to change anything?+
Almost nothing. The financial advisor sends us the year's tax information and gets the unitrust figures back, the individual tax preparer receives a ready-to-use K-1, and the donor or trustee signs two documents a year. Everyone keeps their role.
04When are charitable trust returns due?+
Form 5227 is due April 15, and we aim to have returns done by mid-March so nothing gets rushed. If information comes in late, we'll extend rather than file something that isn't right.
What precedes this, and what runs alongside.
Charitable Trust Planning & Design
How the trust got here. Feasibility, structuring, modeling - the work that precedes annual administration.
Major Gift Consulting
For nonprofits whose CRTs we administer: we model the next gift the same way we administered the last one.
Need administration for an existing trust?
Bring us the trust instrument and the last filed return. We'll tell you whether we're the right fit before you commit to anything.