[Congressional Record Volume 161, Number 177 (Tuesday, December 8, 2015)]
[Extensions of Remarks]
[Page E1726]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 INCREASING CHARITIES' ACCESS TO FUNDS

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                         HON. PATRICK J. TIBERI

                                of ohio

                    in the house of representatives

                       Tuesday, December 8, 2015

  Mr. TIBERI. Mr. Speaker, charitable remainder trusts present an 
opportunity for donors to transfer assets for the benefit of charity. 
Lack of certainty regarding the tax consequences of early terminations 
of these trusts has deterred early terminations, which has deferred the 
transfer of substantial assets to charity. Early terminations of 
charitable remainder trusts should be encouraged because they permit 
charities to access their share of the trust's assets earlier (and, in 
some instances, decades earlier) than otherwise would be the case. This 
is particularly compelling given that, under current economic 
conditions, many charities have been forced to cut back on many 
deserving programs.
   My bill provides that, on an early termination of a charitable 
remainder trust, the donor and the charity will apportion the value of 
the trust using the same methodology that was used to determine the 
value of the remainder interest on formation. The donor will recognize 
capital gain on the total value received, the charity will receive its 
share of the trust's assets, and the early termination will not 
constitute self-dealing or otherwise disqualify the charitable 
remainder trust.
   Today, Rep. Rangel and I are introducing this bill which clarifies 
the tax consequences of early terminations of charitable remainder 
trusts and encourages the early transfer of funds in such trusts to 
charities. Mr. Speaker, I urge all my colleagues to support our bill to 
give charities earlier access to funds for use in their worthwhile 
endeavors.

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