Discussion:Transaction between trust and trustee
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Discussion Forum Index --> Advanced Tax Questions --> Transaction between trust and trustee
Discussion Forum Index --> Tax Questions --> Transaction between trust and trustee
| 31 October 2007 | |
| Char Unitrust has appreciated property. Beneficicary/trustee wishes to buy property (RE) for the corpus value plus the amount of gain that would belong to the charitable beneficiaries had the property been sold for FMV. Does the beneficiary/trustee realize any gain for obtianing the property for less than FMV? or is his basis just what he pays the CRT for it? | |
| 1 November 2007 | |
| You are correct. Looks like 4941 would apply. This will likely kill the idea. I need to do some more research, however you hit the nail right on the head. | |
| 1 November 2007 | |
| Reg. 1.664-4 | |
| 1 November 2007 | |
| 664 is one of many operational provisions for CRT. Why would it apply in this situation? | |
| 1 November 2007 | |
| Just from a general fiduciary standpoint, the FMV now could be a steal compared to the RE FMV six months ago. Would "timing the market" so to speak be a breach of fiduciary duty? | |
| 1 November 2007 | |
| Torture is not constitutional. Just kill the sucker. ♫
To be serious (albeit momentarily) my only experience with something similar involved the attorney's decision to have the trustee buy the property at fair market value. Trustee died in an auto accident six weeks later, the estate was audited and the matter is in court. Appraisal for FMV on the trust/trustee transaction may have been understated by as much as 40%. | |
| 3 November 2007 | |
| Trustee has listened to reason and has backed off the idea. I was in the middle of something else and needed this input in order to deal with him. Thanks to all for the time saving advice! | |
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