HR 2491 IHCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to treat charitable remainder pet trusts in a manner similar to charitable remainder annuity trusts.CommentsClose CommentsPermalink

May 24, 2007

Mr. BLUMENAUER (for himself and Mr. RAMSTAD) introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to treat charitable remainder pet trusts in a manner similar to charitable remainder annuity trusts.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. TREATMENT OF CHARITABLE REMAINDER PET TRUSTS IN MANNER SIMILAR TO CHARITABLE REMAINDER ANNUITY TRUSTS.

(a) In General- Subsection (a) of section 664 of the Internal Revenue Code of 1986 (relating to general rule) is amended--CommentsClose CommentsPermalink





(1) by striking `annuity trust and' and inserting `annuity trust,', andCommentsClose CommentsPermalink





(2) by inserting `, and a charitable remainder pet trust' before the period at the end.CommentsClose CommentsPermalink





(b) Income Tax Treatment- Subsections (a) and (c) of section 664 of such Code (relating to exemption from income taxes) are both amended--CommentsClose CommentsPermalink





(1) by striking `annuity trust and' and inserting `annuity trust,', andCommentsClose CommentsPermalink





(2) by inserting `, and a charitable remainder pet trust' after `unitrust'.CommentsClose CommentsPermalink





(c) Charitable Remainder Pet Trust Defined- Subsection (d) of section 664 of such Code (relating to definitions) is amended by adding at the end the following new paragraphs:CommentsClose CommentsPermalink





`(5) CHARITABLE REMAINDER PET TRUST- For purposes of this section--CommentsClose CommentsPermalink





`(A) IN GENERAL- A charitable remainder pet trust is a trust--CommentsClose CommentsPermalink





`(i) from which a sum certain (which is not less than 5 percent nor more than 50 percent of the initial net fair market value for all property placed in trust) is to be paid, not less often than annually, to a designated person or organization, or a successor designated person or organization, for the exclusive benefit (but allowing for payment of any income tax resulting from the payment) of one or more specified pets for a term of years (not in excess of 20 years), such payments to terminate at the earlier of the expiration of the term of years or the death of the last surviving specified pet,CommentsClose CommentsPermalink





`(ii) from which no amount other than the payments described in clause (i) and the taxes imposed pursuant to subsection (c) may be paid to or for the use of any person other than an organization described in section 170(c),CommentsClose CommentsPermalink





`(iii) following the termination of the payments described in clause (i), the remainder interest in the trust is to be transferred to, or for the use of, an organization described in section 170(c), andCommentsClose CommentsPermalink





`(iv) the value (determined under section 7520) of such remainder interest is at least 10 percent of the initial fair market value of all property placed in the trust.CommentsClose CommentsPermalink





`(B) VALUE OF REMAINDER INTEREST- For purposes of determining the value of the remainder interest of a charitable remainder pet trust, the pets' life expectancy shall be disregarded.CommentsClose CommentsPermalink





`(C) PET- A pet is any domesticated companion animal (including a domesticated companion cat, dog, rabbit, guinea pig, hamster, gerbil, ferret, mouse, rat, bird, fish, reptile, or horse) which is living, and owned or cared for by the taxpayer establishing the trust, at the time of the creation of the trust.'.CommentsClose CommentsPermalink





(d) Conforming Amendments-CommentsClose CommentsPermalink





(1) Sections 170(f)(2)(A), 2055(e)(2)(A), and 2522(c)(2)(A) of such Code are each amended by striking `charitable remainder annuity trust or a charitable remainder unitrust' and inserting `charitable remainder annuity trust, charitable remainder unitrust, or charitable remainder pet trust'.CommentsClose CommentsPermalink





(2) Sections 664(e) and 1361(e)(1)(B)(iii) of such Code are both amended by striking `charitable remainder annuity trust or charitable remainder unitrust' and inserting `charitable remainder annuity trust, charitable remainder unitrust, or charitable remainder pet trust'.CommentsClose CommentsPermalink





(3) Paragraphs (1) and (3) of section 664(f) of such Code are both amended by striking `paragraph (1)(A) or (2)(A)' and inserting `paragraph (1)(A), (2)(A), or (5)(A)(i)'.CommentsClose CommentsPermalink





(4) Section 2055(e)(3)(F) of such Code is amended by inserting `or pet (as defined in section 664(d)(5)(C))' after `by reason of the death of any individual'.CommentsClose CommentsPermalink





(5) Section 2652(c)(1)(C) of such Code is amended--CommentsClose CommentsPermalink





(A) in clause (i) by inserting `within the meaning of section 664' before the comma at the end, andCommentsClose CommentsPermalink





(B) by striking `or' at the end of clause (ii), by redesignating clause (iii) as clause (iv), and by inserting after clause (ii) the following new clause:CommentsClose CommentsPermalink





`(iii) a charitable remainder pet trust within the meaning of section 664, or'.CommentsClose CommentsPermalink





(e) Effective Date- The amendments made by this section shall apply to charitable remainder pet trusts created after the date of the enactment of this Act.CommentsClose CommentsPermalink