Legal Question in Wills and Trusts in Hawaii

CRT or NIMCRUT with zero income stream

For an exact legal answer to your question you need to contact a qualified HI tax attorney.

I generally will answer most folks questions on this BBS, however, yours is the kind that we charge for and will not answer for free. I would suggest that you contact Steve Pingree, Tax attorney, Honolulu at 888.599.5911. If he cannot help you, he can refer you to a competent HI tax attorney.

Renaissance, Inc. in Carmel, IN can answer your question and draft the documents for you. Their number is: 1-800-843-0050.

If you cannot find a tax attorney or need a referral, call Lawrence Frieman in Atlanta, GA at 770.379.1450. He can -- for a fee -- answer your question off the top of his head.

If you want to do the work yourself, go read Revenue Rulings 89-20; 90-30; 90-31; 89-21; 90-32; 72-395; 76-7; 76-8; 80-123; 82-165; 88-81; 92-57. And, read Renassiance's publication: A trustmaker's Guide to NIMCRUT's.

Good Luck.

Charitable remainder trust with personal residence?

First, the bad news: you can't use a charitable remainder trust (CRT) for your personal residence and keep the right to live in it.

However, (and check with a Hawaii attorney to confirm this) you may be able to do something similar by making a gift or bequest of a remainder interest in your house and get a charitable income, estate, and gift tax deduction for the present value of the remainder interest at the time you make the gift or bequest.

This is a complicated issue, so again, check with an estate planning/charitable giving attorney in Hawaii.