Split-Interest Trusts

Donors can set up split-interest trusts to make distributions to both charitable and non-charitable beneficiaries and they will receive tax benefits as well. The donor must file a Form 5227 annually to report their financial activity. Split-interest trusts can fall into one of four categories: charitable remainder annuity trusts, charitable remainder unitrusts, charitable lead trusts, or pooled income funds.

See E. Jazmin Antezana, IRS Releases Statistics for Split-Interest Trusts and Annual Required Form 5227, Oct. 7, 2011; see also SOI Tax Stats – Split-Interest Trust Study Metadata. 

Special thanks to Jim Hillhouse (Professional Legal Marketing  (PLM, Inc.)) for bringing this article to my attention.