Free 2008 Form 5227 - Federal

Form

5227

OMB No. 1545-0196

Split-Interest Trust Information Return
See separate instructions.
A

2008
Open to Public Inspection

Department of the Treasury Internal Revenue Service

Full name of trust

Employer identification number

Name of trustee

B

Type of Entity (1) Charitable lead trust Charitable remainder annuity trust described in section 664(d)(1) Charitable remainder unitrust described in section 664(d)(2) Pooled income fund described in section 642(c)(5) Other--Attach explanation

Number, street, and room or suite no. (If a P.O. box, see page 3 of the instructions.)

(2) (3)

City, state, and ZIP code (4) C Fair market value (FMV) of assets at end of tax year D Gross Income (5) F

E

G

Check applicable Initial return Final return Amended return boxes (see Change in trustee's Name Address instructions) If the trust is a section 664 trust, did it have unrelated business taxable income? If "Yes," file Form 4720

Date the trust was created

Yes

No

Part I
1 2a b 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24a b 25a b 26a b

Income and Deductions (All trusts complete Sections A through D) Section A--Ordinary Income
1 2a 3 4 5 6 7 8 9 10

Interest income Ordinary dividends (including qualified dividends) 2b Qualified dividends (see page 4 of the instructions) Business income or (loss). Attach Schedule C or C-EZ (Form 1040) Rents, royalties, partnerships, other estates and trusts, etc. Attach Schedule E (Form 1040) Farm income or (loss). Attach Schedule F (Form 1040) Ordinary gain or (loss). Attach Form 4797 Other income. List type and amount Total ordinary income. Combine lines 1, 2a, and 3 through 7

Section B--Capital Gains (Losses)
Total short-term capital gain or (loss). Attach Schedule D, Part I (Form 1041) Total long-term capital gain or (loss). Attach Schedule D, Part II (Form 1041) 11 Unrecaptured section 1250 gain 12 28% gain Total capital gains (losses). Combine lines 9 and 10

13 14 15 16 17 18 19 20 21 22

Section C--Nontaxable Income
Tax-exempt interest Other nontaxable income. List type and amount Total nontaxable income. Add lines 14 and 15

Section D--Deductions
Interest Taxes (see page 5 of the instructions) Trustee fees Attorney, accountant, and return preparer fees Other allowable deductions. Attach schedule (see page 5 of the instructions) Total. Add lines 17 through 21 Charitable deduction 23

Section E--Deductions Allocable to Income Categories (Section 664 trust only)
Enter the amount from line 22 allocable to ordinary income Subtract line 24a from line 8 Enter the amount from line 22 allocable to capital gains (losses) Subtract line 25a from line 13 Enter the amount from line 22 allocable to nontaxable income Subtract line 26a from line 16
Cat. No. 13227T

24a 24b 25a 25b 26a 26b
Form

For Privacy Act and Paperwork Reduction Act Notice, see page 12 of the instructions.

5227

(2008)

Form 5227 (2008)

Page

2

Part II

Schedule of Distributable Income (Section 664 trust only) See page 6 of the instructions
Accumulations (a) Ordinary income (b) Capital gains (losses) (c) Nontaxable income

27 28

29

Undistributed income from prior tax years Current tax year net income (before distributions): In column (a), enter the amount from line 24b In column (b), enter the amount from line 25b In column (c), enter the amount from line 26b Total distributable income. Add lines 27 and 28

Part III-A
30 31

Distributions of Principal for Charitable Purposes
30

Principal distributed in prior tax years for charitable purposes Principal distributed during the current tax year for charitable purposes. Fill in the information for columns (A), (B), and (C) and enter the amount distributed on the space to the right. (see page 6 of the instructions)
(A) Payee's name and address (B) Date of distribution (C) Charitable purpose and description of assets distributed

a 31a b 31b c 31c 32

32

Total. Add lines 30 through 31c

Part III-B

Accumulated Income Set Aside and Income Distributions for Charitable Purposes (see page 6 of the instructions)
33a 33b 34

33a Accumulated income set aside in prior tax years for which a deduction was claimed under section 642(c) b Enter the amount shown on line 23 34 Add lines 33a and 33b 35 Distributions made during the tax year (see page 6 of the instructions): For income set aside in prior tax years for which a deduction was claimed under section 642(c), or For charitable purposes for which a charitable deduction was claimed under section 642(c) in the current tax year. Fill in the information for columns (A), (B), and (C) and enter the amount distributed on the line to the right.
(A) Payee's name and address (B) Date of distribution (C) Charitable purpose and description of assets distributed

a 35a b 35b c 35c 36 37
Form

36 37

Add lines 35a through 35c Carryover. Subtract line 36 from line 34

5227

(2008)

Form 5227 (2008)

Page

3

Part IV

Balance Sheet (see pages 6 through 8 of the instructions)
(a) Beginning-ofYear Book Value (b) End-of-Year Book Value (c) FMV (see instructions)

38 39 40a b 41 42a b 43 44 45a b c 46a b 47 48a b 49 50

Assets Cash--non-interest-bearing Savings and temporary cash investments 40a Accounts receivable 40b Less: allowance for doubtful accounts Receivables due from officers, directors, trustees, and other disqualified persons (attach schedule) 42a Other notes and loans receivable 42b Less: allowance for doubtful accounts Inventories for sale or use Prepaid expenses and deferred charges Investments--U.S. and state government obligations (attach schedule) Investments--corporate stock. Attach schedule Investments--corporate bonds. Attach schedule Investments--land, buildings, and equipment: 46a basis (attach schedule) 46b Less: accumulated depreciation

38 39

41

43 44 45a 45b 45c

Investments--other (attach schedule) 48a Land, buildings, and equipment: basis 48b Less: accumulated depreciation Other assets. Describe Total assets. Add lines 38 through 49 (must equal line 60) Liabilities 51 Accounts payable and accrued expenses 52 Deferred revenue 53 Loans from officers, directors, trustees, and other disqualified persons 54 Mortgages and other notes payable. Attach schedule 55 Other liabilities. Describe 56 Total liabilities. Add lines 51 through 55 Net Assets 57 Trust principal or corpus 58a Undistributed income b Undistributed capital gains c Undistributed nontaxable income 59 Total net assets. Add lines 57 through 58c 60 Total liabilities and net assets. Add lines 56 and 59

47

49 50 51 52 53 54 55 56 57 58a 58b 58c 59 60
Form

5227

(2008)

Form 5227 (2008)

Page

4

Part V-A

Charitable Remainder Annuity Trust (CRAT) Information (to be completed only by a section 664 CRAT)
61a 61b

61a Enter the initial fair market value (FMV) of the property placed in the trust b Enter the total annual annuity amounts for all recipients

Part V-B
62 63 64

Charitable Remainder Unitrust (CRUT) Information (to be completed only by a section 664 CRUT) See page 8 of the instructions
Yes Yes Yes No No No

Is the CRUT a net income charitable remainder unitrust (NICRUT) as described in Regulations section 1.664-3(a)(1)(i)(b)(1)? Is the CRUT a net income with make-up charitable remainder unitrust (NIMCRUT) as described in Regulations section 1.664-3(a)(1)(i)(b)(2)? Did the trust change its method of payment during the tax year? If "Yes," describe the triggering event including the date of the event and the old method of payment

65a Enter the unitrust fixed percentage to be paid to the recipients b Unitrust amount. Subtract line 56, column (c), from line 50, column (c), and mutiply the result by the percentage on line 65a. Do not enter less than -0If the answer is "Yes" on line 62 or line 63, go to line 66a. Otherwise, skip lines 66a through 67b and enter the line 65b amount on line 68. 66a Trust's accounting income for 2008. Attach schedule If the answer is "Yes" on line 62, go to line 66b. If the answer is "Yes" on line 63, skip line 66b and go to line 67a. b Enter the smaller of line 65b or line 66a here and on line 68. Skip lines 67a and 67b 67a Total accumulated distribution deficiencies from previous years (see page 8 of the instructions) b Add lines 65b and 67a If lines 67a and 67b are completed, enter the smaller of line 66a or line 67b on line 68. 68 Required unitrust distribution for 2008 69 Carryover of accumulated distribution deficiency (only for trusts that answered "Yes" on line 63). Subtract line 68 from line 67b 70 If this is the final return, enter the initial FMV of all assets placed in trust by the donor 71 Did the trustee change the method of determining the fair market value of the assets? If "Yes," attach an explanation. 72 Were any additional contributions received by the trust during 2008? If "Yes," be sure to complete all columns of line 7 in Schedule A, Part III.

65a 65b

%

66a

66b 67a 67b 68 69 70 Yes Yes No No

Part VI-A
73

Statements Regarding Activities (see page 8 of the instructions)
Yes No

74

Are the requirements of section 508(e) satisfied either: By the language in the governing instrument; or By state legislation that effectively amends the governing instrument so that no mandatory directions that conflict with the state law remain in the governing instrument? Are you using this return only to report the income and assets of a segregated amount under section 4947(a)(2)(B)?

73 74
Form

5227

(2008)

Form 5227 (2008)

Page

5

Part VI-B

Statements Regarding Activities for Which Form 4720 May Be Required
applies. Yes No

File Form 4720 if any item is checked in the "Yes" column (to the right), unless an exception 75 Self-dealing (section 4941): a During 2008, did the trust (either directly or indirectly): (1) Engage in the sale or exchange, or leasing of property with a disqualified person? (2) Borrow money from, lend money to, or otherwise extend credit to (or accept it from) a disqualified person? (3) Furnish goods, services, or facilities to (or accept them from) a disqualified person? (4) Pay compensation to, or pay or reimburse the expenses of, a disqualified person? (5) Transfer any income or assets to a disqualified person (or make any of either available for the benefit or use of a disqualified person)? (6) Agree to pay money or property to a government official? (Exception. Check "No" if the trust agreed to make a grant to or to employ the official for a period after termination of government service, if terminating within 90 days.)

Yes Yes Yes Yes Yes

No No No No No

Yes

No

b If any answer is "Yes" to 75a(1) through (6), did any of the acts fail to qualify under the exceptions described in Regulations sections 53.4941(d)-3 and 4, or in a current Notice regarding disaster assistance (see page 75b 9 of the instructions)? Organizations relying on a current Notice regarding disaster assistance, check here c Did the trust engage in a prior year in any of the acts described in 75a, other than excepted acts, that were 75c not corrected before January 1, 2008? 76 Does section 4947(b)(3)(A) or (B) apply? (See page 9 of the instructions.) Yes No If "Yes," check the "N/A" box in questions 77 and 78. N/A 77 Taxes on excess business holdings (section 4943): a Did the trust hold more than a 2% direct or indirect interest in any business enterprise at Yes No any time during 2008? b If "Yes," did the trust have excess business holdings in 2008 as a result of (1) any purchase by the trust or disqualified persons after May 26, 1969; (2) the lapse of the 5-year period (or longer period approved by the Commissioner under section 4943(c)(7)) to dispose of holdings acquired by gift or bequest; or 77b (3) the lapse of the 10-, 15-, or 20-year first phase holding period? Use Schedule C, Form 4720, to determine if the trust had excess business holdings in 2008. N/A 78 Taxes on investments that jeopardize charitable purposes (section 4944): 78a a Did the trust invest during 2008 any amount in a manner that would jeopardize its charitable purpose? b Did the trust make any investment in a prior year (but after December 31, 1969) that could jeopardize its 78b charitable purpose that had not been removed from jeopardy before January 1, 2008? 79 Taxes on taxable expenditures (section 4945) and political expenditures (section 4955): a During 2008, did the trust pay or incur any amount to: Yes No (1) Carry on propaganda, or otherwise attempt to influence legislation (section 4945(e))? (2) Influence the outcome of any specific public election (see section 4955); or to carry on, directly or indirectly, any voter registration drive? (3) Provide a grant to an individual for travel, study, or other similar purposes? (4) Provide a grant to an organization other than a charitable, etc., organization described in section 509(a)(1), (2), or (3), or section 4940(d)(2)? (5) Provide for any purpose other than religious, charitable, scientific, literary, or educational, or for the prevention of cruelty to children or animals? Yes Yes Yes Yes No No No No

b If any answer is "Yes" to 79a(1) through (5), did any of the transactions fail to qualify under the exceptions described in Regulations section 53.4945, or in a current Notice regarding disaster assistance (see page 9 79b of the instructions)? Organizations relying on a current Notice regarding disaster assistance, check here c If the answer is "Yes" to question 79a(4), does the trust claim exemption from the tax because it maintained expenditure responsibility for the grant? (See page 9 of the instructions.) Yes If "Yes," attach the statement required by Regulations section 53.4945-5(d). 80 Personal benefit contracts (section 170(f)(10)): a Did the trust, during the year, receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? Yes b Did the trust, during the year, pay premiums, directly or indirectly, on a personal benefit contract? If "Yes" to 80b, file Form 8870 (see page 9 of the instructions.)

No

No 80b
Form

5227

(2008)

Form 5227 (2008)

Part VII

Page 6 Questionnaire for Charitable Lead Trusts, Pooled Income Funds, and Charitable Remainder Trusts (see instructions beginning on page 9)

Section A--All Trusts
81 82 Check this box if any of the split-interest trust's income interests expired during 2008 Check this box if all of the split-interest trust's income interests expired before 2008 If 82 (above) is checked and this is not a final return, attach an explanation.

Section B--Charitable Lead Trusts
83 Does the governing instrument require income in excess of the required annuity or unitrust payments to be paid for charitable purposes? Enter the amount of any excess income required to be paid for charitable purposes for 2008 Enter the amount of annuity or unitrust payments required to be paid to charitable beneficiaries for 2008 84 85 Yes No

84 85

Section C--Pooled Income Funds
86 87 88 Enter the amount of contributions received during 2008 Enter the amount required to be distributed for 2008 to satisfy the remainder interest Enter any amounts that were required to be distributed to the remainder beneficiary that remain undistributed Enter the amount of income required to be paid to the charitable remainder beneficiary for 2008 86 87 88 89

89

Section D--Charitable Remainder Trusts
90 91 Check this box if you are filing for a charitable remainder annuity trust or a charitable remainder unitrust whose charitable interests involve only cemeteries or war veterans' posts

Check this box if you are making an election under Regulations section 1.664-2(a)(1)(i)(a)(2) or 1.664-3(a)(1)(i)(g)(2) to treat income generated from certain property distributions (other than cash) by the trust as occurring on the last day of the tax year. (See page 10 of the instructions.) 92 Is this the intial return? If "Yes," attach a copy of the trust instrument Yes 93 Was the trust instrument amended during the year? If "Yes," attach a copy Yes 94a If this is the final return, were final distributions made according to the trust instrument? Yes b If "Yes," did you complete line 31? Yes c If either line 94a or 94b is "No," explain why

No No No No

95

At any time during calendar year 2008, did the trust have an interest in or a signature or other authority over a bank, securities, or other financial account in a foreign country? See the instructions beginning on page 10 for exceptions and filing requirements for Form TD F 90-22.1. If "Yes," enter the name of the foreign country

Yes

No

Sign Here
Paid Preparer's Use Only

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than trustee) is based on all information of which preparer has any knowledge.

Signature of trustee or officer representing trustee Preparer's signature Firm's name (or yours if self-employed), address, and ZIP code Date Check if selfemployed EIN Phone no. (

Date Preparer's SSN or PTIN

) Form

5227

(2008)

Form 5227 (2008) Full name of trust Employer identification number

Page

7

NOT Open To Public Inspection

Schedule A--Distributions, Assets, and Donor Information Part I Accumulation Schedule (Section 664 trust only) See page 10 of the instructions
Accumulations (a) Ordinary income (b) Capital gain (loss) (c) Nontaxable income

1 2a b 3

Total distributable income. Enter the amount from line 29 Total distributions for 2008: 2008 distributions from income Undistributed income at end of tax year. Subtract line 2b from line 1
(a) Name of recipient (b) Identifying number (c) Percentage of total unitrust amount payable (if applicable)

Part II-A Current Distributions Schedule (Section 664 trust only) See instructions beginning on page 10

4a b c
Capital gains (d) Ordinary Income (e) Short-term (f) Long-term (g) Nontaxable Income (h) Corpus (i) Total (add cols. (d) through (h)

% % %

4a b c Total If Part II-A, Total, column (i) does not agree with line 61b of Form 5227 for a CRAT or line 68 of Form 5227 for a CRUT, check here and attach an explanation.

Part II-B Current Distributions (charitable lead trusts or pooled income funds only) See page 12 of the instructions
5 Enter the amount required to be paid to private beneficiaries for 2008

Part III

Assets and Donor Information (Section 664 trust or charitable lead trust only)
Yes No

6 Is this the initial return or were additional assets contributed to the trust in 2008? If "Yes," complete the schedule below. If "No," complete only column (a) of the schedule below.
(a) Name and address of donor (b) Description of each asset donated (c) Fair market value of each asset on date of donation

(d) Date of donation

7a

7b

7c 7d

Total Yes No N/A

8 For charitable remainder trusts: If this was the final year, was an early termination agreement signed by all parties to the trust? If "Yes," attach a copy of the signed agreement.

Form

5227

(2008)