To avoid this unexpected gift from the income beneficiary to the remainderman
, the Crumrney power may be limited to a level that does not exceed the allowable lapsing right gift tax exemption (i.
46) Thus, a life tenant can qualify for the homestead creditor exemption with a life estate, but the Florida Supreme Court has determined that a remainderman
cannot qualify with a remainder interest.
L is the life income beneficiary, and R is the remainderman
This duty to act fairly confers a wide discretion upon trustees(35) enabling them to act partially but honestly(36) by favoring an elderly penurious life tenant needing income at the expense of a wealthy remainderman
, especially where the life tenant was close to the testator or settlor and the remainderman
is a more remote relative or a charity.
However, a retained interest which is not a right to receive a fixed amount or a fixed percentage of the fair market value of the property in trust at least annually is disregarded, but only if the remainderman
is a "member of the transferor's family.
However, the IRS states in the preamble that it may consider whether there should be any change in the treatment of the charitable remainderman
participating in such a transaction.
The amount of the gift to each remainderman
should be the present value of one-third of the $8,000 deemed to be transferred.
The capital of the trust belonged to the remainderman
even when the specific assets making up the original capital were replaced by other assets.
The land was held in an unusual remainderman
interest, where in order to maximize the tax shelter benefits in the building, the land was held as an estate for years by the Integrated partnership formed by Integrated Resources.
Under the actuarial method of allocation, the investment company is not an FPHC if the investment company earns $2 million of income, since the majority of the stock would be attributed to the NRA remainderman
21] The right to the income is not a present interest even if B is also the remainderman
entitled to the property on the termination of the trust.
Unlike in NPOs, there exists in trusts a dichotomy of interests between the income beneficiary and the remainderman