Good afternoon,
I could use your advice on a situation I haven't encountered before.
We had a donor with a CRT in which we held a vested remainder interest approach us about being released from that interest. In short, we agreed to the release, and in return they made a gift to us; less than the value of our original interest, but still substantial.
My question is whether that gift would be considered tax deductible. The donor isn't receiving anything of direct economic value in return, other than the ability to redesignate that portion of the CRT remainder to another charity.
Thanks in advance for your insight!
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Rachel Ellis
Point Loma Nazarene University
rellis2@POINTLOMA.EDU------------------------------