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Buchanan Tax attorney Deborah M. Beers penned an article on the Tax Court’s ruling in Estate of Schaefer v. Commissioner, where she focuses on the valuation of the remainder interest for net-income-with-makeup charitable remainder unitrust.

Beers notes that in the decision, the court found that the Schaefer trust failed the 10 percent test – stating that the trust must be equal to at least 10 percent of the value of the assets placed in the trust – and that no deduction for the value of the remainders was allowable. 

Read the full article – “Tax Court Rules Fixed Percentage Specified in NIMCRUT Must Be Used To Value Interests in Determining Whether Trust Meets Remainder Requirement” (Bloomberg BNA’s Daily Tax Report, September 1, 2015). Subscription required.