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Client setup a Charitable Remainder Unitrust and paid out distributions that were less than the required distributions for the year. They used 6% all year instead of 7% per agreement documents. Should they distribute out more this year to get these distributions caught up to 7% for the prior year?
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A CRUT can make its required annual payments within a reasonable time after year-end. According to the regs., the time up to the extended due date of the CRUT’s tax return is reasonable. See Reg. §1.664-3 for details.
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What if it was missed in the prior year? I imagine it's best to pay it out late rather than not at all..
Also, If it's paid after the tax year, is it best to show it as a liability versus not?
