How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Merlo Your Own Question
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
Type Your Tax Question Here...
Merlo is online now
A new question is answered every 9 seconds

A charitable remainder unitrust (CRUT) document states that

Resolved Question:

A charitable remainder unitrust (CRUT) document states that the unitrust distribution is to be paid to the recipient "at the end of each calendar month".

How does the IRS interpret the words "at the end of each calendar month"

Does it mean on the last business day of the month?
Does it mean sometime during the last week of the month?
If the end of the calendar month falls on a Saturday, Sunday or Holiday, does it mean that the distribution is paid out prior to the last day of the month. OR, does the distribution get held-over and is paid on the 1st business day of the following month?
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.

The definition of "at the end of each calendar month" is not something dictated by the IRS.

That is wording chosen by the creator of the trust, and the trust document itself should further clarify how those payments are handled if the end of the month falls on a weekend or holiday. It is not something determined by the IRS.

Normally in the absence of any specific rules regarding the end of month date, the distribution should be made on the last business day of the month in order to be in compliance with the terms of the trust document.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank youCustomer

Merlo and other Tax Specialists are ready to help you