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Sara established a charitable remainder unitrust, naming herself as the sole income beneficiary. Her brother, Edward, is having his will prepared and, as a strong supporter of the charity named as remainderman of Sara’s trust, wants to include a bequest for an additional contribution to Sara’s trust if he predeceases her. Sara’s unitrust allows additional contributions. Can he make a contribution to Sara’s trust through his estate?
In the annotations for the IRS sample charitable remainder unitrust documents, the IRS indicates that “only the donor or a donor’s estate may make an additional contribution” to a unitrust. Contributions by others may cause the disqualification of the trust under Rev. Procs. 2005-52 through 2005-59. Edward could, instead, leave a bequest in a separate charitable remainder unitrust to benefit Sara and then their favorite charity. For purposes of the rule, “donor” includes the actual contributor and the actual contributor’s spouse. ■