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Generating fiduciary Form 5227 for a charitable trust in Lacerte

by Intuit•1• Updated 1 year ago

Follow these steps to generate Form 5227 for a charitable trust for tax year 2021 and newer:

  1. Go to Screen 1, Client Information.
  2. Scroll down to the Miscellaneous Info section.
  3. Locate the Type of Entity field.
  4. Select Charitable Trust from the Type of Charitable Trust dropdown menu.
  5. Complete all other applicable information on this screen.
  6. Go to Screen 6, Beneficiary/Grantor Information.
  7. Complete any applicable information for each beneficiary.
  8. Go to Screen 8, Annuity/Unitrust Distribution.
  9. Enter the Percentage (xxx.xxxxxx) for each beneficiary.
    • This should be no less than 5% and no more than 50%.
  10. Complete all screens applicable to the trust including screens listed under Income and Deductions on the Detail tab.
  11. Complete any applicable information on each of the following screens:
    • Screen 48.1, Form 5227
    • Screen 48.2, Form 5227 - Part III - Assets and Donor Info.
    • Screen 49.1, Balance Sheet

Additional information

  • For a charitable remainder annuity trust (CRAT), you need to complete the Initial fair market value placed in trust field under the Part VI Charitable Remainder Unitrusts section on Screen 48.1. 
    • This amount is used to determine the total annual annuity amounts for all recipients by multiply this amount by the percentages entered in Screen 8, Annuity/Unitrust Distribution. These amounts flow to Part V line 1(a) and 1(b).
  • For a Charitable Remainder Unitrust (CRUT), you need to enter the FMV column of the Assets and Liabilities sections on Screen 49.1, Balance Sheet.
    • The net amount is multiplied by the percentages entered in Screen 8, Annuity/Unitrust Distribution to calculate the Unitrust amount on Part VI line 4(b). 
    • Additional entries may be required in Part V-B Charitable Remainder Unitrusts section of Screen 48.1.
  1. Go to Screen 1, Client Information.
  2. Scroll down to the Miscellaneous Info section.
  3. Locate the Type of Entity field.
  4. Select Charitable Trust from the Type of Charitable Trust dropdown menu.
  5. Complete all other applicable information on this screen.
  6. Go to Screen 6, Beneficiary/Grantor Information.
  7. Complete any applicable information for each beneficiary.
  8. Go to Screen 8, Annuity/Unitrust Distribution.
  9. Enter the Percentage (xxx.xxxxxx) for each beneficiary.
    • This should be no less than 5% and no more than 50%.
  10. Complete all screens applicable to the trust including screens listed under Income and Deductions on the Detail tab.
  11. Complete any applicable information on each of the following screens:
    • Screen 48.1, Form 5227
    • Screen 48.2, Form 5227 - Part III - Assets and Donor Info.
    • Screen 49.1, Balance Sheet

Additional information

  • For a charitable remainder annuity trust (CRAT), you need to complete the Initial fair market value placed in trust field under the Part V-A Charitable Remainder Annuity Trusts section on Screen 48.1. 
    • This amount is used to determine the total annual annuity amounts for all recipients by multiply this amount by the percentages entered in step 8. These amounts flow to lines 61(a) and 61(b).
  • For a charitable remainder unitrust (CRUT), you need to enter the FMV column of the Assets and Liabilities sections on Screen 49.1, Balance Sheet.
    • The net amount is multiplied by the percentages entered in step 8 to calculate the unitrust amount on line 65(b). 
    • Additional entries may be required in Part V-B Charitable Remainder Unitrusts section of Screen 48.1.
Lacerte Tax 2023

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