[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1796 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1796

    To amend the Internal Revenue Code of 1986 to treat charitable 
   remainder pet trusts in a similar manner as charitable remainder 
           annuity trusts and charitable remainder unitrusts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 10, 2001

Mr. Blumenauer introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to treat charitable 
   remainder pet trusts in a similar manner as charitable remainder 
           annuity trusts and charitable remainder unitrusts.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. AMENDMENT OF 1986 CODE.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Internal Revenue Code of 
1986.

SEC. 2. CHARITABLE REMAINDER PET TRUSTS.

    (a) Charitable Remainder Pet Trust Defined.--Section 664(d) is 
amended by adding at the end the following new paragraphs:
            ``(5) Charitable remainder pet trust.--For purposes of this 
        section, a charitable remainder pet trust is a trust--
                    ``(A) from which a sum certain is to be paid, not 
                less often than annually, for the exclusive benefit of 
                one or more pets (as defined in paragraph (6)) for a 
                term of years (not in excess of 20 years) or for the 
                life or lives of such pet or pets,
                    ``(B) from which no amount other than the payments 
                described in subparagraph (A) and the taxes imposed 
                pursuant to subsection (c) may be paid to or for the 
                use of any person other than an organization described 
                in section 170(c),
                    ``(C) following the termination of the payments 
                described in subparagraph (A), the remainder interest 
                in the trust is to be transferred to, or for the use 
                of, an organization described in section 170(c), and
                    ``(D) the value (determined under section 7520) of 
                such remainder interest is at least 10 percent of the 
                initial fair market value of all property placed in the 
                trust.
            ``(6) Pet.--For purposes of a charitable remainder pet 
        trust, a pet is any domesticated companion animal (including a 
        domesticated companion cat, dog, rabbit, guinea pig, hamster, 
        gerbil, ferret, mouse, rat, bird, fish, reptile, or horse) 
        which is living, and owned or cared for by the taxpayer 
        establishing the trust, at the time of the creation of the 
        trust.''.
    (b) Tax on Annuity Distributions From Charitable Remainder Pet 
Trusts.--Section 664(c) is amended by inserting ``, and except, in the 
case of a charitable remainder pet trust, that any distribution during 
such year for the benefit of a pet (as defined in subsection (d)) shall 
be taxable income of the trust for such year, to the extent of the 
income of the trust for the year and undistributed income of the trust 
for prior years after ``applied to such trust)''.
    (c) Conforming Amendments.--
            (1) Section 170(f)(2)(A), section 2055(e)(2)(A), and 
        section 2522(c)(2)(A) are amended by striking ``charitable 
        remainder annuity trust or a charitable remainder unitrust'' 
        and inserting ``charitable remainder annuity trust, charitable 
        remainder unitrust, or charitable remainder pet trust''.
            (2) Subsections (a) and (c) of section 664 are amended by 
        striking ``charitable remainder annuity trust and a charitable 
        remainder unitrust'' and inserting ``charitable remainder 
        annuity trust, charitable remainder unitrust, and charitable 
        remainder pet trust''.
            (3) Section 664(e) and section 1361(e)(1)(B)(iii) are 
        amended by striking ``charitable remainder annuity trust or 
        charitable remainder unitrust'' and inserting ``charitable 
        remainder annuity trust, charitable remainder unitrust, or 
        charitable remainder pet trust''.
            (4) Paragraphs (1) and (3) of section 664(f) are amended by 
        striking ``(1)(A) or (2)(A)'' and inserting ``(1)(A), (2)(A), 
        or (5)(A)''.
            (5) Section 2055(e)(2)(F) is amended by inserting ``or pet 
        (as defined in section 664(d))'' after ``by reason of the death 
        of any individual''.
            (6) Section 2652(c)(1)(C) is amended--
                    (A) in clause (ii) by striking ``within the meaning 
                of section 664, or'' and inserting ``,'';
                    (B) by redesignating clause (iii) as clause (iv); 
                and
                    (C) by inserting after clause (ii) the following 
                new clause:
                            ``(iii) a charitable remainder pet trust 
                        within the meaning of section 664, or''.
            (d) Effective Date.--The amendments made by this section 
        shall apply to charitable remainder pet trusts created after 
        the date of the enactment of this Act.
                                 <all>