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G1990, Reviewed October 1993
The use of vegetable oil in compression-ignition engines is not new. Rudolph Diesel, who is credited with invention of the engine, first used peanut oil as fuel. However, the petroleum-based fuel we now call "diesel fuel" soon became the fuel of choice because of economic advantage. Until political unrest made availability questionable and air pollution became a concern, little consideration was given to alternative fuels.
In 1974, when unrest in the oil-rich Middle East threatened crude oil supplies, it became apparent that other countries dependent on imported oil could quickly be deprived of necessary fuel (at present, the U.S. has about 4.4 percent of the proven world petroleum reserves but consumes 25 percent of the world oil supply). As a result, research on alternate fuels was funded and old research information was retrieved.
Considerable research was then conducted on vegetable oils (such as soybean, safflower, rapeseed, sunflower and peanut oils) to fuel compression-ignition engines. An International Conference on Plant and Vegetable Oils as Fuels was sponsored by the American Society of Agricultural Engineers in August 1982. Yet research declined in the late 1980s as the price of petroleum-based fuels dropped.
The Persian Gulf war in 1991 reminded us that the U.S. cannot rely solely on foreign oil for fuel to produce, process and distribute food and feed products. The need to be self-sufficient and to have a reliable energy source now seems important enough to look beyond simple economic comparison.
The chemical structure of vegetable oil, an organic acid ester, is a glycerine molecule with up to three fatty acids linked to it with ester linkages. The comprehensive term triglyceride is used to describe this arrangement. The process of squeezing the seeds to remove oil and leave the meal, which usually has value as animal feed, is called expelling. Degumming is a process for removing gummy substances and impurities from the raw, or neat, oil. Transesterification, or esterification, is the chemical process of converting an organic acid ester to another ester of the same acid. As used in this guide, esterification removes the glycerine stem from the molecule and the resulting ester has a much smaller molecule, which improves characteristics such as viscosity that are desirable for use as an engine fuel.
Several states have conducted research on the feasibility of biodiesel fuel. Scientists in North Dakota have investigated expelling, degumming and esterifying oil from sunflower seed. Idaho scientists have investigated rapeseed oil, developing a relatively simple procedure for esterification. Rapeseed oil, which is used for industrial processes, contains a level of erucic acid that is detrimental to animal feed, so low erucic acid varieties, called canola, have been developed. In general, research information on rapeseed is applicable to canola.
Scientists in Illinois and Missouri have investigated the use of esterified soybean oil, called soy ester, and soy ester/diesel blends. In general, research findings indicate that it is feasible to use vegetable oil esters from a variety of sources as extender or replacement fuels for compression-ignition, internal-combustion engines. Table 1 compares characteristics of diesel fuel and some vegetable oils and their esters.
Table 1
Comparison of fuel properties
At present, a pickup truck with a direct-injection, compression-ignition engine can be operated on esterified soybean oil. The truck is being used over-the-road and for typical farm activities to evaluate the effect of soy ester on engine wear when subjected to varying load/temperature conditions. Fuel is heated when temperature falls below the oil's cloud point (about 34 degrees Fahrenheit), the point when filter clogging can occur. Periodic samples of engine lubricating oil are analyzed for presence of metals that would indicate unusual engine wear. Exhaust emission levels are periodically analyzed for air pollutants. Exhaust is visually cleaner than diesel fuel exhaust, and the odor from vegetable oil is considerably less offensive than that of diesel fuel. Table 2 illustrates the non-visible emissions data by various diesel/soy oil blends. A 50/50 blend appears to have good characteristics.
Table 2
Emissions data
The esterified soybean oil used is presently being purchased from a supplier. The oil is already esterified. It is hoped that a portable esterification system, which could be used by individual farmers or a cooperative group of farmers, can be constructed for demonstration use. Additional work is needed to learn what processing steps are required to be sure no harm will be done to the engine or to the environment. This work is being funded in part by a grant from the Missouri Soybean Merchandising Council.
Diesel fuel is sold on a per gallon basis, while soy oil sells by the pound. For comparison, some equivalent basis, such as volume or Btu content, is needed.
Consider a volume basis. Soy ester weighs about 7.7 pounds per gallon. Number 2 diesel fuel weighs about 7.1 pounds per gallon. If soy ester can be substituted on a one-to-one basis with diesel fuel, 7.7 times the price per pound for soy ester would equal the price per gallon for diesel fuel, or 0.13 times the price per gallon of diesel fuel would equal the price per pound for soy ester. For example, if soy ester costs 20 cents per pound, the equivalent cost for diesel fuel would be $1.54. Or, if diesel fuel costs $1 per gallon, the equivalent cost per pound for soy ester would be 13 cents per pound.
Since diesel fuel contains more heat energy per gallon than soy ester, a one-to-one comparison may not be fair. Using values from Table 1, number 2 diesel fuel contains about 138,400 Btu per gallon and soy ester about 132,900 Btu per gallon. About 1.04 gallons of soy ester would be required to perform the same work as one gallon of diesel fuel. On an energy basis, soy ester at 20 cents per pound would be equivalent to a diesel fuel cost of $1.60 per gallon.
Potential oil yield for soybeans is about 18 percent. That is, from a bushel of soybeans weighing 60 pounds, 10.8 pounds of oil can be removed. The remaining meal may be sold for about $185 per ton (or 9.25 cents per pound). Oil yield from canola and sunflower ranges from 40 to 45 percent.
The first commercial use of vegetable oil in the U.S. will likely be as a blend with diesel fuel. Several test vehicles are operating at present on blended fuel at Lambert Field airport in St. Louis.
Austria, Germany and Switzerland have removed all sales and road tax from biodiesel. If the total tax associated with the sale of diesel fuel in Missouri were about 30 cents per gallon and soy ester could be produced for $3 or less per gallon (if it were not taxed), then it would not cost the consumer any additional money to use a 10/90 soy ester/diesel fuel blend.
Emphasis on control of engine emissions is increasing. Using diesel fuel will require provisions for "cleaning" the exhaust. This eventually may make biofuel the fuel of choice, either alone or as a biofuel/diesel blend, because it naturally causes less air pollution.
Order publications online at http://extension.missouri.edu/explore/shop/ or call toll-free 800-292-0969.


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EOMC welcomes new doctor to staff
A new physician is joining the team at Eastern Oklahoma Medical Center in Poteau.The board of trustees of the LeFlore County Hospital Authority unanimously agreed to enter into contract with Dr. Doug Duke, D.O., during its regular meeting Tuesday afternoon. Duke received his undergraduate degree from the University of Alabama, and then attended Kansas City University of Medicine and Biosciences in Kansas City, Mo., where he obtained his graduate degree. Duke relocated to Oklahoma and completed his residency at the Oklahoma State University's College of Osteopathic Medicine. Duke is practicing medicine as a member of the Sparks Surgical Associates of Fort Smith. He specializes in appendectomies, gall bladder removal, complex hernia repair, gastrointestinal correction, breast surgery and wound care. Duke is expected to join the surgical team at EOMC on April 1.

subset: commoncrawl


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Super 8 New Caney properties are listed below. Search for cheap and discount Super 8 hotel rooms in New Caney, TX for your upcoming meeting or individual travels. We list the best Super 8 New Caney lodging so you can review the New Caney Super 8 hotel list below to find the perfect place.
Our search will list below New Caney, TX hotels & motels that get similar quality scores of a Super 8.Need 5+ Rooms? Get group bids from hotels in New Caney TX
How should we direct your call?


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McAfee Security for Microsoft SharePoint
Ordering Made Simple
Easy as 1-2-3
Advanced Anti-Virus Technology
Advanced Content Management
McAfee anti-virus technology stops most types of virus and malicious code threats; it drills down to find threats in compressed files using advanced heuristics that looks for virus-like behavior and generic detection that looks for variants on known viruses; the result is that your system spots new viruses immediately.
McAfee Security for Microsoft SharePoint applies rules to more than 300 types of documents, including Adobe Acrobat and Microsoft Office, to prevent inappropriate or unauthorized downloads and uploads.
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Preset content rules gets you started immediately to prevent the spread of inappropriate content. Preset Rules can also be customized, as needed, to meet the growing demands of your business.
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McAfee Security for Microsoft SharePoint automatically updates virus definitions and scan engines every day to assure up-to-date protection.
Single-Console Management
Manage McAfee Security for Microsoft SharePoint and other McAfee security products with McAfee ePolicy Orchestrator®, which helps you manage your security and view reports from one powerful and easy-to-use console.
Uses Microsoft VSAPI
Provides proactive background scanning by using Microsoft's VSAPI 2.0 technology for SharePoint Portal Server 2001.
- Microsoft SharePoint Portal Server 2009Microsoft Windows Server 2003Information Services (IIS) 6.0 or lateInternet Explorer v6.0 or laterServer Operating SystemMicrosoft Windows 2003 Server with Service Pack 2 (32-bit and 64-bit)Microsoft Windows 2008 Server latest SP available (32-bit and 64-bit)ProcessoR2.5 GHz processor (x86) or higher, dual processor, 3 GHz or higherIntel EM64MemoryRAM: 2 GBHDD: Minimum 500 MB of free hard disk


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Ledbetter Equal Pay Act Passes Congress
January 29, 2009
In response to the U.S. Supreme Court's decision in Ledbetter v. Goodyear Tire & Rubber Co. (2007) 550 U.S. 618, Congress passed Senate Bill 181 (the "Lilly Ledbetter Fairy Pay Act of 2009"). There have been a number of attempts to legislatively alter the Ledbetter decision, which held that the statute of limitations for filing a Title VII charge of employment discrimination with the EEOC begins when the discrete discriminatory act occurs.
In Ledbetter's case, she claimed she was paid a lower salary than her male counter-parts. Goodyear Tire & Rubber Co. avoided liability by establishing the fact that Ledbetter's salary had been lower than her male counter-parts for years. Since discrimination claims must be filed with the EEOC within 180 days of the discrimination (or 300 days in some states), the court held that Ms. Ledbetter failed to timely exhaust her administrative remedies despite the fact that the consequences of discriminatory pay practice continued. In essence, the court felt that the discriminatory act occured when Ms. Ledbetter initially received the lower pay and the fact that the lower pay led to lower raises over the next several years creating an even greater disparity was insufficient to start a new violation. Employee advocates dissatisfied with the decision immediately began petitioning the legislature to amend Title VII.
Senate Bill 181 amends Title VII, the Age Discrimination in Employment Act, the Americans with Disabilities Act and the Rehabilitation Act, to clarify that a unlawful discriminatory compensation decisions occur each time compensation is paid pursuant to the discriminatory compensation decision. The bill willmake it unlawful each time an employer writes a paycheck that gives some workers less than others, because of race, sex, disability, religion or national origin. The bill still needs to be approved by President Obama. Once signed into law, it will apply to bias claims that filed on or after May 28, 2007.Sayar Fausto, LLP
350 Second St. Suite 5
Los Altos, CA 94022
Tel: (650) 948-6114
Fax: (650) 947-0770
Your use of this blog does not create an attorney-client relationship between you and SAYAR FAUSTO LLP. The use of the Internet or this blog for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be posted in this blog and SAYAR FAUSTO LLP cannot guarantee the confidentiality of anything posted to this blog.


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Sunday, June 16 is Father's day, and it's very important to celebrate dads, because they're the ones who kill the spiders. A June 2012 survey conducted by RetailMeNot.com found that quality time spent with the family is the gift dads most want to receive on Father's Day! The gifts dads said they least appreciate receiving are neckties and "#1 Dad" T-shirts. (I am guessing soap-on-a-rope would be up there too!) So, give dad what he really wants this year – quality time with the family! Following are three EASY celebrations (the name of this page is "Relax" after all) that dads of all generations will enjoy. (Of course, anyone named "Dad" will need to be responsible for eliminating any spiders interfering with the festivities!).
Golf Par-Tee
If your dad likes golf, this par-tee will suit him to a "tee!"
Serve this casual buffet on a table lined with artificial grass (found at hardware stores) for the look of a putting green!
Flavored "Tees"
Make up batches of a variety of flavored "tees" and "tee-off" with a "tee-tasting!" There are lots of flavored teas on your grocer's shelves these days that you can either brew or make up from a powdered mix.
Golf Club Sandwiches
Make up a platter of club sandwiches (turkey, bacon, lettuce tomato and mayo on a variety of breads), insert a golf tee into each in lieu of a toothpick, (we like the way they did this on journeyofparenthood.com) and voilà! Your theme-appropriate main "course" is ready!
"Chip Shots"
Fill foil cupcake liners (tin cups) with a variety of gourmet-flavored potato chips. Find liners in the bakery aisle of your grocery near cake-decorating supplies.
"Wedge" Salads
Remember this childhood and diner favorite? For a simple wedge salad, cut a head of iceberg lettuce into small wedges. Top each with your favorite bleu cheese (or ranch) dressing, chopped tomato, crumbled bacon, bleu cheese and a few slivers of red onion. Serve immediately. We found these pretty wedge salads on the blog "Good. Clean. Fun."
Tin cup-cakes
Make dad's favorite flavor of cupcakes in foil ("tin cup") liners or buy pre-made cupcakes and set into foil liners (found in the bakery aisle of the grocery store.) Frost the cupcakes (if homemade), top with coconut colored with green food coloring or green jimmies to look like grass, insert a golf tee in each. If you like, use a dab of frosting as "glue" to adhere a white gumball to the top of each tee as a golf ball!
Gifts and Activities
This tee-rific gift doubles as a party activity for dad! SwimWays Pro-Chip Spring Golf Game can be played on land or in the pool! The twist-and-fold floating target green opens and closes with a flip of the wrist. Game includes 1 floating golf target, 12 golf balls (3 red, 3 orange, 3 yellow, 3 blue), chipping pad, and 1 movable 18th hole flag along with a carry/storage bag. Assign a different color ball to each player in rotating foursomes to have a backyard golf tournament! Sold at various stores across the country or get it here. Other fun golf-related activities for your par-tee include playing croquet and ladder golf.
Tracy Kunzler
Latest posts by Tracy Kunzler (see all)
- Shark Week Pool Party - August 5, 2014
- Use Your Noodle Decorating - July 17, 2014
- Red, White and Blue Fourth of July Pool Party - June 23, 2014
- Poolside Baby Shower - June 2, 2014


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All News Releases By Date
Merrimack N.H. Company Will Help Clean Wood Stoves in Southern N.H.; Total Penalty of $101K for Clean Air Violations
Release Date: 12/13/2012
Contact Information: David Deegan, (617) 918-1017
(Boston, Mass. – Dec. 13, 2012) – A specialty coated products manufacturer has agreed to pay a penalty of $20,200 and to spend $80,800 to replace old, polluting wood stoves in southern New Hampshire with new, cleaner models to settle EPA claims that it violated the federal Clean Air Act.
Nashua Corporation has agreed to help homeowners replace their wood stoves with EPA-certified wood stoves or other cleaner, more efficient home heating equipment such as gas or propane heaters. The woodstove change-out program is being managed by American Lung Association of the Northeast. Nashua will provide a voucher—typically for $1,000 per household—as an incentive to replace pre-1988 woodstoves. Pre-1988 woodstoves are a significant source of indoor and outdoor air pollution. A new wood stove installation costs about $3,000.
"The Merrimack area will benefit from this wood stove change-out project," said Curt Spalding, regional administrator of EPA's New England regional office. "Homeowners will get help with buying new wood stoves, which will burn cleaner and more efficiently. This project will create green jobs, reduce fuel consumption, and improve air quality in communities by reducing the harmful pollutants that come from wood smoke."
Nashua is a manufacturer of specialty coated products for printing, labeling and ticketing applications and is a manufacturer of unique coatings for paper and film based products. EPA conducted a Clean Air compliance inspection of Nashua in May 2010. EPA determined that Nashua was subject to the National Emission Standards for Hazardous Air Pollutants for Miscellaneous Organic Chemical Manufacturing. Nashua had failed to comply with the notification and reporting provisions of the regulation. Nashua has since submitted the required notifications and reports to EPA and paid the penalty.
More information about Hazardous Air Pollutants: https://www.epa.gov/ttn/atw/allabout.html
Learn More about the Latest EPA News & Events in New England (https://www.epa.gov/region1/newsevents/index.html)
Follow EPA New England on Twitter (http://twitter.com/epanewengland)
More info on EPA's Environmental Results in New England (https://www.epa.gov/region1/results/index.html)
Search this collection of releases | or search all news releases
View selected historical press releases from 1970 to 1998 in the EPA History website.


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SOFIA, Bulgaria (AP) — At least 12 people died and an unknown number were missing after heavy rain and floods hit parts of northeastern Bulgaria, officials said Friday.
Interior Minister Tsvetlin Yovchev confirmed that 10 bodies, including two children, were recovered from floodwaters in the worst-hit Black Sea resort town of Varna. It was unclear how many more people were missing after torrential rain flooded large parts of the town.
Two more bodies were recovered in the northern city of Dobrich.
A state of emergency was declared in Varna's low-lying district of Asparuhovo, where many houses were flooded and dozens of cars had floated away, in some cases lying on top of each other. Rescue teams were bringing distressed people to temporary shelters.
Many people seen on the streets were crying over the deaths of loved ones, others desperately looked for help.
Yani Yanev, a 61-year-old resident of the Asparuhovo district, pointed at the mud-covered streets, wrecked cars and debris, saying it was the worst disaster in his lifetime.
"It is unbelievable and unexplainable when you look at all the damage around caused by the flood that hit us," Yanev said.
Prime Minister Plamen Oresharski, who arrived in Varna early Friday, called the flooding "a huge tragedy." The government declared Monday, June 23, a national day of mourning.
Large parts of the Balkan country have been hit by heavy rain and hailstorms, and hundreds of people have been cut off from electricity and food supplies.
Emergency teams were dispatched to the worst-affected areas, and the Bulgarian Red Cross was providing drinking water, food and essential supplies to victims.
The national meteorological service said rainfall in eastern Bulgaria in the past 24 hours equaled the average amount for a month, and warned that more rain was expected.


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If you like mock drafts, here's another mock draft.
LINK: http://seahawksdraftblog.com/mock-draft ... h-february
The mocks we do here generally look at situations. 'Who will be available at #25 if a certain team drafts a certain player.' You know the drill by now.
This weeks projection is different. Sure, there are scenarios we can point to — such as Ziggy Ansah going in the top ten or two quarterbacks going early. But the idea this week is to compare how things look before and after the combine. So I've tried to make a projection based on how I see things unfolding in Indianapolis. Who moves up the board. Who falls. We'll see how accurate it is next week.


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Animal Crossing: New Leaf
|Animal Crossing: New Leaf
|Release Date
|June 9, 2013 NA
November 8, 2012JP
June 14, 2013 EU
June 15, 2013AU
|Social Simulation
|Nintendo 3DS
[edit] Background
Animal Crossing: New Leaf is a social simulation game developed and published by Nintendo exclusively for the Nintendo 3DS handheld system. It is the fourth installment in the Animal Crossing series featuring a new play system in which the player manages his/her village as mayor with the help of the town secretary. It was first released in Japan in November of 2012 and then worldwide in 2013.
[edit] Development
Prior the release of the 3DS, rumors of the game's development were floating around and eventually confirmed when Animal Crossing 3DS was announced at E3 2010. It was set to be released along with a plethora of other installments of well-known series, but neither an exact nor estimated release date were provided. More information and screenshots were released at the following year's E3 conference and other events including the Tokyo Game Show in late 2011. Nintendo claimed that the game would be out before 2012's fiscal year end but failed to deliver.
On October 25, 2012, Nintendo announced via their monthly Nintendo Direct session that the localized title for North America will be Animal Crossing: New Leaf. Its projected release window would be the first half of 2013 for NA and Q2 for Europe. Australia was excluded. Along with the date, they also showcased the game's official logo for the first time, which surprisingly received a good deal of criticism due to its color inconsistencies and lack of traditional hanging sign.
On February 14th 2013, a week after the game's release in Korea, Nintendo finally revealed a release date of June 9th 2013 for North America and June 14th for Europe and the UK. A few days later, June 15 was announced for Australia. The game is now available in all regions and in the top five best selling 3DS software titles list.
[edit] Gameplay
In Animal Crossing: New Leaf, players will fill Tortimer's role as mayor with the help of town secretary Isabelle. Inside the town hall, players have access to his/her town rating as well as flag and town tune options. Players can also decide to construct Public Works Projects or enact town ordinances from the mayor's desk.
Each village now comes with a Main Street, island, and StreetPass Plaza. The Main Street houses all of the main shops (give for Re-Tail which is located within the main village area) as well as the museum and other fun shops/services. The island is accessible by boat from the dock and features many rare fish, bugs, and sea creatures as well as exclusive items and mini games. The StreetPass Plaza (not available on Japanese copies of the game) is located beyond the gate on Main Street and contains the model homes of anyone you may have StreetPassed.
[edit] Controls
|Circle Pad
|Move character
|Circle Pad + B, R or L
|Interact with a character/object, use tool, swim
|Quicken type speed, cancel action
|Pick up an item, dive
|Open bottom screen menu
|Take a screenshot (top screen only)
|D-Pad Down
|Unequip Tool
|D-Pad Left/Right
|Equip/Switch tool
[edit] Multiplayer
There are two multiplayer connection options: local and Wi-Fi. In order to play together, players will need to exchange friend codes- the 12-digit number auto-assigned to each system- and add the other into his/her 3DS friends list. Once both players have been added, each will able to visit the others' town via the train station, where they can explore foreign lands, exchange items, play games, and much more. Unfortunately, there is no voice chat functionality; players are forced to type on a small keyboard that displays as a pop up on the top screen.
[edit] DLC
DLC or downloadable content is free in Animal Crossing: New Leaf. Players can access particular items during specified times/events by speaking to the post office clerk and selecting "Ask about a present". Wirless must be enabled and the switch turned on. Each player gets one of each DLC item unless otherwise specified.
For a full list of New Leaf DLC, visit our New Leaf DLC page.
As of July 1, 2015 North American players can no longer download DLC from the servers.
[edit] Trailers
|Animal Crossing Series
| Preceded by
Animal Crossing: City Folk
|Animal Crossing: New Leaf
| Succeeded by
Related ThreadsRumor: New Leaf shows up on GameFly as a Wii U title, could Nintendo be planning a console release? - last post by Fluidity @ Jan 27, 2013
Life in gxville and new leaf review. - last post by @ Jun 9, 2013
AC: New Leaf Sets 3DS Sales Record in Japan - last post by @ Dec 28, 2012
Iwata: City Folk's disappointing reception influences New Leaf - last post by @ Jan 18, 2013
New Leaf "Welcome amiibo" update is live, watch the Nintendo Direct here! - last post by @ Nov 5, 2016
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Screening & Discussion: Tsofa Documentary by Congolese Director Rufin Mbou Mikima, Jun. 25 2014 @ Mageuzi Space – Pawa254 Hub
June 25, 2014 at 5:01 pm Njathika Leave a comment
Pawa254 Hub will be screening the documentary Tsofa by Congolese Director Rufin Mbou Mikima
Tsofa tells the story of a group of Congolese men, many of them highly qualified university graduates who were offered a 600 euro/month job by a Romanian company to go and work as taxi drivers in Bucharest, the European country's capital.
"To Romanians, black people living in their country must be either football players or students," Mbou Mikima notes in one of the film's opening scenes.
He first met the group back in 2008 while working in Bucharest himself. Through the use of the men's own photos, mobile phone images and other video material, he retraces their initial steps, hopes and expectations, where it went wrong (it did), and what happened after the return of some of them to Congo (Brazza).
Date & Time: June 25, 2014
Venue: Mageuzi Space, Pawa254
Time: from 5:30 – 8 pm
More info here
Entry filed under: debate, screenings. Tags: Bucharest, European Union, pawa254 hub, Rufin Mbou Mikima.
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text: My mission is to seek to learn, for learning is the basis for growth, and growing is the key to living. I will seek first to understand, for understanding is the key to finding value, and value is the basis for respect, decisions, and action. This should be my first act with my family,my coworkers, and my future businesses. I want to help influence the future development of people and organizations. I want to teach my children and others to love and laugh, to learn and grow beyond their current bounds. I will build personal, business, and civic relationships by giving, in frequent little ways.I live to serve my talents as communicator, artist, and independent businesswoman. I create balance in work, play, and community. I inspire those I interact with and strive to help rescues that have saved equines from local high slaughter risk auctions.


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Insomnia is going to drive me insane, or it may be the reason I am almost there already. My vision blurs, I can't remember anything, there's nothing I would rather do that lay down and close my eyes but when I do that, sleep doesn't come. It's that I am just stuck staring at the inside of my eyelids, waiting waiting and waiting.
When I was younger this never happened. I would fall asleep just by positioning my head in a certain way. Like a dog, I was out in seconds. Sleep was an escape from the world, and now I feel trapped. It's terrible, but it's also amazing when I do finally get to sleep, sometimes 3-4 days later. The entire structure of my awareness topples. It's like a backwards Nestea plunge, although not into a cool, brown pool of iced tea, but into the warm bath of sleep. Dreams are colorful and hypnotic and they include sex with rock stars and really cute shoes and songs and jokes that beg to be written.
I awake so refreshed and illuminated that I bounce out of the bed like a superball. The swirl of life in me is freshly stirred and I can face just about anything. But now, with the curse of jetlag upon me, I have depleted all of myself. My hands shake and everything seems dismal and threatening. Food tastes ugly, if that could be imagined. All invitations want to be declined upon receipt. There's nothing that pulls me down more than the intangible prison of consciousness. I know I should meditate, or never work or read in bed. Yes hot milk is a good idea and that lavender smells good but I also know full well I am incapable of certain types of self care, and this dumb affliction, for now, keeps me up at night, all night.


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Recently Issued PLRs Offer Cautionary Tale to Trustees Failing to Administer Charitable Remainder Trusts in Accordance with Governing Instrument
Recently Issued PLRs Offer Cautionary Tale to Trustees Failing to Administer Charitable Remainder Trusts in Accordance with Governing Instrument
Richard Fox lends us a cautionary tale about the need for proper administration of Charitable Trusts. A recent Private Letter Ruling demonstrates the dire consequences of retaining the wrong person for administration.
By: Richard L. Fox, Esq.
In recently issued PLRs 201714002 and 201714003, the IRS ruled that the failure of a trustee to administer a charitable remainder unitrust ("CRUT") with a net income limitation in accordance with its governing instrument caused the trust not to qualify under §664(a).[1] Moreover, although it failed to qualify under §664(a), the IRS ruled that the CRUT still constituted a split-interest trust under §4947(a)(2) and, therefore, was subject to the Chapter 42 private foundation excise tax rules. The fatal flaw in these rulings was the trustee improperly including capital gain in the computation of trust income, which was not permitted under either the governing trust instrument or state law. As a result, the actual payments to the noncharitable beneficiary exceeded the amounts permitted to be paid under the governing instrument.
These rulings reinforce the importance of the trustee of a charitable remainder trust ("CRT") to adhere to the terms of the controlling governing instrument. The rulings also demonstrate the need of a taxpayer to retain advisors who are knowledgeable, experienced and reputable, particularly when it comes to complicated charitable planning tax vehicles, as the financial planner and attorney in these rulings made major missteps and misrepresentations, ultimately resulting in a flawed CRT and a host of tax problems.
Background on CRTs
A CRT is a widely-used charitable planning technique that is often a recommended vehicle for individuals with substantially appreciated capital gain property, a charitable intent, and a need for a stream of income during their lifetimes. The basic concept of a CRT involves a transfer of property to an irrevocable trust, the terms of which provide for the payment of an annuity or unitrust amount to the settlor (or other designated noncharitable beneficiary) for life or another predetermined period of time up to twenty years. The amount remaining in the CRT after the expiration of the annuity or unitrust payments must be transferred to one or more qualified charitable organizations or continue to be held in the trust for the benefit of such organizations. Unlike an outright gift to charity, therefore, a CRT blends the philanthropic intentions of a donor with his or her financial needs or the financial needs of others.
There is generally no gain recognition on the contribution of appreciated property to a CRT,[2] and because it is exempt from income tax, §664(a), the CRT may sell the transferred property on a tax-free basis and reinvest the proceeds in other assets. For an inter vivos CRT, a charitable income tax deduction is available for the present value of the charitable remainder interest. Therefore, in addition to providing a source of future payments to the settlor (or to one or more other or additional noncharitable beneficiaries), the CRT provides the dual benefit of an upfront charitable income tax deduction and the tax-free sale of appreciated property by the CRT.
While the CRT itself is exempt from income tax under §664(a), the annual annuity or unitrust payments carry out income to the noncharitable beneficiary or beneficiaries based on specified ordering rules under a special four-tier system, generally treating the most highly taxed income of the trust as being distributed first.[3] Therefore, income realized by the CRT, although tax-free to the CRT, is ultimately taxable, albeit on a deferred basis, when it passes into the hands of a noncharitable beneficiary of the CRT.
CRATs and CRUTs
There are two basic types of CRTs: a charitable remainder annuity trust ("CRAT") and a CRUT.[4] A CRAT provides for a fixed payment of a specified dollar amount at least annually to the noncharitable beneficiary or beneficiaries. The amount of the annual payment must be equal to at least 5% but not more than 50% of the initial net fair market value ("FMV") of all of the assets transferred to the trust.[5]
A CRUT provides for a payment at least annually to the noncharitable beneficiary or beneficiaries of a fixed percentage of the FMV of the trust principal revalued on an annual basis. Similar to the CRAT regime, the fixed percentage for a CRUT must be equal to at least 5% but not more than 50% of the net FMV of the assets of the trust as revalued annually.[6] While the amount of the annual payment under a CRAT is determined upon the funding of the trust and remains constant throughout its term, the amount of the annual payment under a CRUT fluctuates from year to year based on the FMV of the trust assets. When the value of the trust assets appreciates, unitrust payments will increase, and when the value of the trust assets depreciates, unitrust payments will decrease.
Variations of CRUTs Based on Net-Income Limitation
While a CRAT comes in one basic form, a CRUT can take a variety of forms. Under the standard CRUT, the amount of the payment to the noncharitable beneficiary or beneficiaries is equal to a fixed percentage of the value of the trust assets revalued on an annual basis.[7] The payment is made even when the net fiduciary accounting income of the trust is less than the fixed percentage payout amount, in which case a portion of the payment would necessarily come from the corpus of the trust. When CRTs were first being considered in the context of the Tax Reform Act of 1969, the Senate Finance Committee amended the House bill to allow distributions for both CRATs and CRUTs to be limited to the net income of the trust, under the following rationale:
Allowing a charitable remainder trust to distribute to the income beneficiary the lesser of the trust income or the stated payout will prevent a trust from having to invade corpus when the income for a year is below that originally contemplated.[8]
The Conference Committee, without explanation, applied this income limitation only to CRUTs. In the context of CRUTs, but not CRATs, therefore, the trust document may contain a provision limiting the distribution to the income of the trust in any year in which the net income is less than the fixed percentage payout amount otherwise required to be distributed if the trust were a standard CRUT.[9] The net income limitation has resulted in the following variations of the standard CRUT:
- Net income CRUT with make-up provision (NIMCRUT): A NIMCRUT pays a fixed percentage of the value of trust assets each year, or if less, the net income of the trust for the year, with any deficiencies due to the income limitation to be made up in later years to the extent the trust net income exceeds the amount determined using the fixed percentage payout rate.
- Net income CRUT with no make-up provision (NICRUT): A NICRUT pays a fixed percentage of the value of trust assets each year, or if less, the net income of the trust for the year. Any deficiencies due to the income limitation are not made up in later years, however, even if in later years the trust net income exceeds the amount determined using the fixed percentage payout rate.
- A NICRUT or NIMCRUT that flips to a standard CRUT (FLIP CRUT): A FLIP CRUT begins with a net income limitation, either in the form of a NICRUT or NIMCRUT, and then, upon the occurrence of a permissible triggering event, flips to a standard unitrust[10] and, therefore, upon the flip, makes payments based on the fixed percentage payout rate without regard to the trust's net income.
For purposes of calculating the available charitable tax deduction, the calculation of the value of the remainder interest passing to charity under a NICRUT or NIMCRUT is made without regard to the fact that the annual distributions to the noncharitable beneficiary may be limited in those years in which the net income of the trust is less than the fixed percentage payout amount otherwise required to be distributed.
As a result, the available charitable income tax deduction for the funding of a NICRUT or NIMCRUT is not reduced by virtue of the net income limitation, although such limitation may result in the charitable remainder beneficiary ultimately receiving more funds (and the noncharitable beneficiary ultimately receiving less funds) than when, as in the case of a standard CRUT, distributions are not subject to a net income limitation.
Inclusion of Capital Gain in Trust Income of NIMCRUT
As a threshold matter, any allocation of capital gain to income in the context of a NIMCRUT must be in accordance with the rules applicable to CRTs under § 664. Otherwise, an allocation of capital gain to income will result in the disqualification of the NIMCRUT. The applicable CRT regulations provide that the income of a NIMCRUT should generally be determined pursuant to the statutory and regulatory requirements of Code § 643. Under § 643(b), the term "income" means the amount of the income of the trust determined "under the terms of the governing instrument and applicable state law." With respect to the allocation of capital gain realized by a NIMCRUT to trust income, Reg. § 1.664-3(a)(1)(i)(b)(3) specifically provides as follows:
Proceeds from the sale or exchange of any assets contributed to the trust by the donor must be allocated to principal and not to trust income at least to the extent of the fair market value of those assets on the date of their contribution to the trust. Proceeds from the sale or exchange of any assets purchased by the trust must be allocated to principal and not to trust income at least to the extent of the trust's purchase price of those assets. Except as provided in the two preceding sentences, proceeds from the sale or exchange of any assets contributed to the trust by the donor or purchased by the trust may be allocated to income, pursuant to the terms of the governing instrument, if not prohibited by applicable local law. A discretionary power to make this allocation may be granted to the trustee under the terms of the governing instrument but only to the extent that the state statute permits the trustee to make adjustments between income and principal to treat beneficiaries impartially.
Under the foregoing provision, it is permissible under §643 for a trustee of a NIMCRUT to be granted a discretionary power to allocate to trust income capital gain realized on assets purchased by the trust to the extent such an allocation would be permitted under state law. In addition, if permitted by state law, a trustee may have a discretionary power under such provision to allocate to trust income capital gain income realized with respect to such transferred assets attributable to appreciation occurring subsequent to the transfer The two categories of capital gain income, i.e., capital gain realized on assets purchased by the trust and capital gain income on appreciation of assets transferred to the trust subsequent to the transfer, are commonly referred to as "post-contribution capital gain."
Application of § 4947(a)(2) TO CRTs
Although exempt from income taxes under § 664(c)(1),[11] a CRT does not qualify under §501(c)(3) and, therefore, is not exempt from tax under IRC § 501(a). As such, a CRT cannot be classified as a private foundation under § 509(a). A CRT is, however, included within the definition of a "split-interest trust" under IRC § 4947(a)(2) and, as such, is subject to certain Chapter 42 excise tax provisions otherwise applicable to private foundations. The private foundation excise tax provision can often prove to be quite troublesome and present certain obstacles in the context of CRTs.
Specifically, § 4947(a)(2) provides that a trust that is not exempt from income tax under §501(a), not all the unexpired interests in which are devoted to one or more IRC § 170(c)(2)(B) purposes and which has amounts in trust for which a charitable contribution deduction was allowed under §§170, 545(b)(2), 642(c), 2055, 2106(a)(2), or 2522, will be subject to the following private foundation provisions:
(1) § 507 (relating to termination of private foundation status);
(2) § 508(e) (relating to governing instrument requirements (to the extent applicable to split-interest trusts);
(3) § 4941 (relating to taxes on self-dealing);
(4) § 4943 (relating to excess business holdings);
(5) § 4944 (relating to investments, which jeopardize charitable purposes); and
(6) § 4954 (related to taxable expenditures).
In the absence of proof to the contrary, a trust is presumed to have amounts in trust for which a deduction was allowed under §§170, 545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), or 2522 if a deduction would have been allowable under one of these sections.[12] During the term of the trust where annuity or unitrust payments are being made to noncharitable beneficiaries, a CRT qualifying under §664 is subject to §4947(a)(2). Under special rules provided under §4947(b)(3), the excess business holdings rules of §4943 and the jeopardy investment rules of §4944 do not apply to a trust otherwise described in §4947(a)(2) if a deduction was allowed under §§170, 545(b)(2), 642(c), 2055, 2106(a)(2), or 2522 for amounts payable under the terms of such trust to every remainder beneficiary but not to any income beneficiary. Therefore, IRC §§4943 and 4944 do not apply CRT qualifying under §664 where such a deduction was allowed.
Formalities in the Administration of CRTs in Accordance with Governing Instrument
Where a CRT otherwise meets all of the requirements of §664, the failure to comply with the formalities in connection with the administration of the trust in accordance with its governing instrument may result in disqualification of the trust under §664, causing potentially disastrous results. The leading case in this area is the Estate of Melvine B. Atkinson,[13] where the settlor of a CRAT, at age 95, funded a CRT with stock worth approximately $4 million.
The trust provided for annuity payments of $200,000 to be paid to her for life. Notwithstanding the terms of the CRAT, the annuity payments were never, in fact, made to the settlor. The settlor's estate claimed a $3.9 million estate tax charitable deduction,[14] which the IRS disallowed on the basis of the trust not complying with the terms of the trust from the date of its creation. In affirming the decision of the Tax Court, the Eleventh Circuit Court of Appeals stated:
The documents that establish the Atkinson annuity trust track the charitable remainder annuity trust requirements to the letter. However, the Atkinson annuity trust fails to comply with the charitable remainder annuity trust rules throughout its existence. Yearly annuity payments to Atkinson were not made during her lifetime. Accordingly, since the charitable remainder annuity trust regulations were not scrupulously followed through the life of the trust, a charitable deduction is not appropriate.
In response to the taxpayer's argument that the failure to pay annuity payments amounts to nothing more than a "foot fault" or a minor mistake, the court stated that "[i]t is not sufficient to establish a trust under the charitable remainder annuity trust rules, then completely ignore the rules during the trust's administration, thereby defeating the policy interests advance by Congress in enacting the rules themselves."
The court emphasized that Congress required strict adherence to the requirements of §664 and, barring such adherence, a complete denial of a charitable deduction was warranted. Notwithstanding that the failure to pay the annuity payments in Atkinson in no way injured the charitable remainder beneficiary (in fact, it would have benefitted the charity), the court disallowed the entire estate tax charitable deduction claimed by the estate. Thus, even where there is no harm to the charitable remainder beneficiary, all of the technical requirements and formalities of a CRT must be followed.
PLRs 201714002 and 201714003
In PLRs 201714002 and 201714003, the taxpayer had assets consisting primarily of low basis, non-dividend paying stocks. The taxpayer was advised by his financial planner, as well as his lawyer, who was recommended by the financial planner, to transfer his low basis capital assets to a CRUT in order to avoid the imposition of capital gain taxes on the subsequent sale of those assets by the trust. The taxpayer was also advised that this arrangement would allow the trust to sell the stock in the future without incurring capital gains taxes, and that trust would serve both as an estate planning vehicle and a charitable giving vehicle. In addition, the taxpayer claimed a charitable income tax deductions under §170 upon funding the trust and for the second and third year of the trust, when additional transfers were made to the trust by the taxpayer.
Under the governing instrument of the CRUT, the taxpayer was named a co-trustee and the initial noncharitable beneficiary of the unitrust payments. The term of the CRUT was 20 years and, if the taxpayer died during the term of the trust, a successor noncharitable beneficiary, who was the other co-trustee, was to receive the unitrust payments for the remainder of the term and become the sole trustee. If the successor noncharitable beneficiary did not survive the 20-year term, then such beneficiary's spouse was to become the sole trustee and successor noncharitable beneficiary for the remaining term.
According to the PLRs, the attorney advised the taxpayer that there would be no gift taxes due upon the creation of trust because there would be no completed gift to the successor recipient at that time. To achieve this result, the taxpayer was supposed to retain the right to change the successor recipient. However, when the attorney drafted the trust agreement, he failed to reserve the taxpayer's right to change the successor recipients. As a result, the interests of the successor recipients vested at the time the trust agreement was executed, and the gift to the successor recipients became complete causing gift tax to be due and owing. However, when gift tax returns were prepared by the taxpayer's accountant for the year the trust was created and funded, the accountant relied on the advice given by attorney that no gift was made as result of the property transfers to the trust.
The trust governing instrument provided that the definition of trust income for purposes of determining the payouts to the noncharitable beneficiary was "defined in §643(b) of the Internal Revenue Code of 1986 and regulations thereunder." Apparently, there was no language contained in the trust governing document either requiring or granting the discretion to the trustee to allocate any post-contribution capital gain to trust income and, under the applicable state law, capital gain income was otherwise required to be allocated to principal, not trust income.
The ruling state that the taxpayer's financial planner and attorney "allegedly made a number of misleading and legally erroneous representations regarding the operation of the Trust," including promising the taxpayer that he would receive a guaranteed fixed percentage annual return on the net fair market value of trust assets. Relying upon the advice and representations made by the financial planner and attorney, the taxpayer executed the trust agreement.
Apparently, unbeknownst to the taxpayer (and perhaps to the attorney and financial planner), the trust was drafted as a NIMCRUT, whereby the trust was required to pay a unitrust amount each year equal to the lesser of a fixed percentage of the value of the trust or the trust income, with any deficiencies resulting from the income limitation to be made up in later years to the extent the trust income exceeds the amount determined using the fixed percentage payout rate. The fixed percentage was not stated in the rulings, but had to be at least equal to the 5% minimum required payout.
At the recommendation of the financial planner, the trust assets were invested by the trustees in annuities and insurance products that the planner was licensed to sell. These types of investments were apparently incapable of producing trust income sufficient to pay the fixed percentage payout rate under the trust, which would have caused the payouts to be limited to trust income, not the greater fixed percentage payout amount that the financial planner and attorney represented would be paid.
Based upon the advice of the financial planner and attorney, contrary to the governing instrument and applicable state law and in an effort to bring the trust income up to the fixed percentage payout amount, the trustee augmented the trust income by including capital gain income of the trust in the calculation of trust income. This augmented amount was paid to taxpayer during the term of the trust for each year that he was alive, including the year the trust was created and funded.
By improperly allocating capital gain income to trust income for purposes of determining the payouts to the noncharitable beneficiary, the trustee erroneously determined the amount to be distributed to the taxpayer by improperly including capital gain income in the calculation of trust income. Therefore, from its creation, the trust was not administered according to the terms of its governing instrument, resulting in distributions having been made to the taxpayer during his lifetime that exceeded the amounts that were legally permissible.
Following the third year of the term of the trust, the taxpayer died and the successor noncharitable beneficiary became the sole trustee and sole unitrust recipient. After presumably being advised (by someone other than the financial planner and attorney involved in the trust's creation) about the trust's compliance failures, the trustee petitioned the local court to either reform or terminate the trust.[15] In response to the petition, and despite objections by the State Attorney General, the court issued a declaration and order determining that trust was void ab initio.
The court's order in this regard was contingent on the trust receiving a favorable ruling from the IRS that provides that such declaration would not result in additional federal income tax consequences. The court order further provided that, in the event the trust does not receive a favorable ruling from the IRS, the trustee was required to file a statement to that effect with court, and upon such filing the trust will be declared to be terminated and, after payment of all amounts due and owing the IRS and State Department of Revenue from the assets of trust, the remaining assets in the trust will be distributed to its unitrust recipient, with no funds going to the charitable remainder beneficiary. The successor noncharitable beneficiary died after the date the court order was issued and his surviving spouse then became the sole trustee and unitrust recipient.
Rulings Made by IRS
The IRS ruled that based on the Estate of Atkinson, discussed above, the trust failed to operate exclusively as a CRT from its creation (and, therefore, throughout its existence) by failing to operate in accordance with its terms by making distributions in excess of the annual trust income to the noncharitable beneficiary of the trust. As a result, the trust, from the date of its creation, was determined not to be a CRT for purposes of § 664.
The IRS ruled that the court's order to treat the trust as void ab initio provided, however, the IRS confirmed the lack of any additional federal tax consequences, "would be equivalent to a rescission." In this regard, the IRS noted that in §3.02(8) of Rev. Proc. 2016-3, 2016-1 I.R.B. 126,133, the IRS announced that the question of whether a completed transaction may be rescinded for federal income tax purposes is an area in which rulings will not be issued. Based on this Revenue Procedure, the IRS concluded that it was unable to provide a favorable ruling that the local court's declaration that the trust was void ab initio would have no federal tax consequences. Without a favorable ruling on this issue, the IRS stated, "it appears that Court's order would default to Trust termination. In that event, the question becomes whether there are federal tax consequences for such termination." As such, the IRS could only determine the tax consequences of the trust's termination, whereby the remaining trust funds (after payment of taxes due) would be distributed to the unitrust recipient, with no funds to be distributed to the charitable remainder beneficiary.
In making this determination, the IRS stated that while the trust failed to operate exclusively as a CRT and thus maintain its tax exemption under §664, it was nevertheless subject to the split-interest trust rules under §4947(a)(2) because (1) the trust was not exempt from tax under §501(a), (2) not all of the unexpired interests in the trust were devoted to charitable purposes, and (3) the trust had amounts in trust for which a charitable deduction was allowed under §170. Even though the charitable deduction taken under §170 was technically not allowable because the trust failed to qualify under §664, the IRS stated that because charitable deductions were claimed by the taxpayer under §170 and were not challenged by the IRS, these deductions were "allowed" for purposes of §170, under the reasoning of Virginian Hotel Corp., 319 U.S. 523 [30 AFTR 1304] (1943).
In that case, the Supreme Court held that "allowed" meant that the taxpayer had taken the deduction and the IRS had not challenged it. Noting that there was "no machinery for formal allowances of deductions from gross income," the Supreme Court held that a deduction being claimed and going unchallenged by the IRS is the only way in which a deduction could be "allowed."
As a result of the trust being subject to §4947(a)(2), the IRS ruled that the proposed distribution of trust assets to the noncharitable beneficiary upon the termination of the trust, "without regard to the interest of the charitable remainder beneficiary," would result in excise taxes under §§4941 (self-dealing) and 4945 (taxable expenditure), which would require correction,[16] in effect, making any such distribution prohibitive. The IRS stated that the trust "may avoid these chapter 42 [private foundation] taxes by voluntarily terminating its private foundation status under §507(a)(1) prior to distribution of assets pursuant to the court order, under the procedures set forth in §1.507-1(b)." Such a voluntary termination, however, as noted in the rulings, triggers a "termination tax" under §507(c), which could be equal to the entire net value of the remaining assets.[17] Therefore, a voluntary termination of the trust's private foundation status prior to the proposed distribution to the noncharitable beneficiary would not have been a workable solution to the noncharitable beneficiary seeking a distribution from the trust in accordance with the court order.
The IRS further noted in the rulings that if a distribution was, in fact, actually made to the noncharitable beneficiary in accordance with the court order prior to the trust voluntarily terminating its private foundation status, such a distribution "may also be regarded as a willful and flagrant act giving rise to liability for tax under chapter 42 (as voluntarily, consciously, and knowingly in violation of chapter 42 and grossly contrary to the purpose of a split-interest trust …)," thereby justifying the involuntary termination of the trust's status as a private foundation, which also triggers the termination tax under §507(c).
Finally, the IRS ruled that the trust must file income tax returns and pay any income tax owed, plus interest and penalties, as a trust subject to taxation under Title 1, Subchapter J of the Code for any tax years that may remain open under §6501(a) from the date of trust's establishment. And because the trust did not qualify as a CRT under §664 and no distributions, in any event, were proposed to go to charity, the entire value of the trust would have been included in the taxpayer's gross estate, with no offsetting estate tax charitable deduction under §2055.
Given the rulings by the IRS, it is a virtual certainty that no distribution was ever made by the trust to the noncharitable beneficiary pursuant to the local court order. Instead, the trustee would have likely sought a court order for the termination of the trust by distributing all of the assets to the charitable remainder beneficiary or, possibly, a proportionate distribution of trust assets to the unitrust recipient and the charitable remainder beneficiary.[18]
PLRs 201714002 and 201714003 reinforce the importance of the trustee of a CRT adhering to the terms of the controlling governing instrument, including paying the proper amount to the noncharitable beneficiary. The rulings also demonstrate the need of a taxpayer to retain advisors who are knowledgeable, experienced and reputable, particularly when it comes to tax vehicles as complicated as split-interest trusts, as the financial planner and attorney in these rulings, as specifically noted by the IRS, made major missteps and misrepresentations, ultimately resulting in a flawed CRT and a host of tax problems.
Apparently in response to the frequency of administrative errors that are committed in the administration of CRTs and other split-interest trusts, the Department of Treasury 2016-2017 Priority Guidance Plan includes "Guidance under §§2522 and 2055 regarding the tax impact of certain irregularities in the administration of split-interest charitable trusts." In light of the strict application of the Atkinson case by the IRS, it should be interesting to see if this guidance ultimately provides an alternative to the disqualification of a CRT in circumstances where it is not administered in accordance with the governing instrument.
[1] Unless otherwise noted, all section references are to the Internal Revenue Code, as amended, and the regulations promulgated thereunder.
[2] The exception to this general rule of nonrecognition is when encumbered property is transferred to a CRT, whereby a bargain sale will be considered to result, thereby triggering a potential gain on the contribution. This is the case because amount of the indebtedness is treated as an amount realized by the settlor, even if the CRT does not assume or pay the indebtedness. Reg. §1.1001-2(a)(3); PLRs 7808016 and 7903075.
[3] Reg. §1.664-1(d)(1)(ii).
[4] The statutory framework for CRATs and CRUTs are set forth, respectively, at §§664(d)(1) (annuity trust) and 664(d)(2) (unitrust).
[5] §664(d)(1)(A). Reg. §1.664-1(a)(1)(i).
[6] §664(d)(2)(A); Reg. §1.664-1(a)(1)(i).
[7] §664(d)(2)(A); Reg. §1.664-1(a)(1)(i).
[8] NICRUTs and NIMCRUTs are permitted under §664(d)(3).
[9] A net income limitation may be particularly useful when the property contributed to a CRUT is not liquid and the property is unproductive or the income that it produces is substantially less than the standard unitrust payment, but it is anticipated that the property will be sold or produce significant income at some future point in time.
[10] FLIP CRUTs are authorized under Reg. §1.664-3(a)(l)(i)(c).
[11] Note, however, that under §664(c)(2)(A), a CRT is subject to a 100% excise tax on any unrelated business taxable income as defined under § 512.
[12] Reg. § 53.4947-1(a). See also, e.g., PLR 200009058 ("The Trust is presumed (in the absence of proof to the contrary) to have amounts in trust for which a deduction was allowed if a deduction would have been allowable under those sections."); IRM 126.96.36.199.3(1) ("If a charitable deduction was allowable, it will be presumed to have been taken and allowed in the absence of proof to the contrary.").
[13] 115 TC 26 (2000), aff'd, 309 F3d 1290, 90 AFTR2d 2002-6845 (11th Cir. 2002).
[14] Because the settlor was the designated noncharitable beneficiary of the annuity payments, the corpus of the trust was required to be included in her gross estate under § 2036. In such a case, however, an estate tax charitable deduction is allowable for the value of the remainder interest passing to a qualified charity.
[15] This was done after a number of failed petitions by the successor beneficiary for the trust to be reformed, to which the State Attorney General and the charitable remainder beneficiary objected.
[16] Generally, "correction" means undoing a transaction to the extent possible which, in these rulings, would have required that the distributions to the noncharitable beneficiary be repaid to the trust.
[17] §507(c) imposes on a organization voluntarily terminating its private foundation status a tax "equal to the lower of (1) the amount which the private foundation substantiates by adequate records or other corroborating evidence as the aggregate tax benefit resulting from the section 501(c)(3) status of such foundation or (2) the value of the net assets of such foundation."
[18] See Fox and Blattmachr, New Valuation Rules for NICRUT/NIMCRUT Early Termination, Estate Planning Journal (July 2016).
Submitted by Richard Fox on Tue, 06/27/2017 - 13:03
Re: Recently Issued PLRs Offer Cautionary Tale to Trustees ...
The regulations provide that, with respect to a CRT, "trust income may not be determined by reference to a fixed percentage of the annual FMV of the trust property, notwithstanding any contrary provision in the applicable state law."
Submitted by Herbert Schechter on Fri, 06/16/2017 - 17:11
Re: Recently Issued PLRs Offer Cautionary Tale to Trustees ...
In this case, the State law did not permit payments from corpus. Will the result be different if the State law has a "total return" definition of income? Can distributions be made from gains in the value of investments if the Trust instrument allows it?


text:
Following last week's comments on the Global Entrepreneurship Research Network, I offer a second and final post on matters arising from the government-convened entrepreneurship summit in Kuala Lumpur. The roundtable discussion among "startup policy" experts on October 12 signaled a new chapter in knowledge creation around how governments can better enable their startup communities.
One of the most surprising moments for me at the Global Entrepreneurship Summit a little more than a week ago was when I was asked to join some ministers and other policymakers for a private lunch. Prime Minister Najib Razak of Malaysia—who was not expected to attend—suddenly showed while walking at a deliberate pace like a man with a mission. He stopped in his tracks. "No, no" he said. "No, I came over to sit with the young entrepreneurs while they eat. Delighted to see you all at work, but where are the teams building companies here this week?"
Of course! What was I thinking? Meeting startup entrepreneurs is much more important to policymakers. Such a conversation can offer insights into policy roadblocks that cannot be perceived from raw data from within a government agency. Such conversations can bring a better understanding of the actual challenges startups face in their risk-intense path, whether a burdensome tax code, an anti-competitive regulatory environment, limited access to capital, a lack of entrepreneurial talent or even just adverse cultural factors such as young people being discouraged by their parents to take such a risk. The Prime Minister came to soak up their innate optimism—and he would likely walk away with more.
That is why we convened a Policy Roundtable as part of the Global Entrepreneurship Summit in Kuala Lumpur side-by-side with activities underway among busy entrepreneurs. Too often these discussions are considered separate – different skill sets with different experts needed at the table.
Entrepreneurs gathering in Kuala Lumpur for various entrepreneurship events and competitions last week made their voices heard—formally and informally—during interactive exchanges of ideas between countries and sectors. During a regulatory policy roundtable discussion, issues such as making startup registration processes smoother was what policymakers had on their minds. But the audience of entrepreneurs brought other topics to the table. One asked why campaign rules allow behemoth companies to hold political power. He argued they were arcane institutions that perpetuate in anti-competitive licensing processes and procurement practices that underestimate disruptive business models and technologies, leaving sectors "immune" to entrepreneurship. The entrepreneurs provided vivid examples of those realities back home—from Argentina to Greece. As Dane Stangler, director of Research and Policy at the Kauffman Foundation, pointed out, we have a plethora of policy issues around the world still left to tackle. That includes these and other, less obvious areas that represent relevant thickets of anti-entrepreneurial incentives or that add more risk to the already risky entrepreneurial career path.
That could not be truer in the case of entrepreneurial finance. The JOBS Act in the U.S. is an example of a recent battle over accommodating regulations to new forms of early stage financing—mainly crowdfunding. Regulations will always need to adjust to future forms of entrepreneurial finance making it difficult to put entrepreneurship in the policy or legislative agenda. At the Policy Roundtable, Dato' Hafsah Hashim, CEO of SME Corporation in Malaysia, explained the hard work of preparing Malaysian financial institutions to use non-traditional parameters to assess businesses that are offering new and untested business ideas. It is an entirely new way of thinking for investors in developing economies where angel and venture capitalist are scarce.
The commercialization of university technologies is another knot that has yet to be untied by any country. The World Bank's Esperanza Lasagabaster shared with those at the roundtable the different levers used by countries trying to hold government-funded research institutions accountable to technology commercialization—a task that requires "very specialized, sophisticated skills, involving legal, technical and financial expertise." Denmark has established regulations that call for commercialization benefits to be shared equally between the university, the specific department and the actual researchers. China, Mexico and Brazil have all passed science and technology laws addressing incentives for faculty, demonstrating that the issue is of utmost importance for development. China has also made it easier for faculty to engage in startup creation on a part time basis while continuing to maintain their positions at the universities. The University of Manchester, in turn, recognized commercialization activities in career development evaluations. The Portugal Ministry of Education has taken a pragmatic approach to the lack of critical mass of innovations, creating a network of technology transfer offices among various universities.
Despite all this experimentation, it is important to note that few countries have focused legislation or institutions on new and young firms as a separate economic engine. That is why Mexico has caught the attention of many. At the Policy Roundtable, Adriana Tortajada explained the vision of the newly established INADEM (National Entrepreneurial Institute), of which she is acting Director General. With this new agency within the Mexico's Ministry of the Economy, the administration of President Enrique Peña-Nieto seems to have gotten into the act. INADEM aims to help fund startups and entrepreneurial-related activities, and the world is watching for the first results.
In terms of entrepreneurship education, in many countries like Indonesia, private education programs fill the gap left by government's typical standalone interventions. Antonius Tanan from Universitas Ciputra argued that it is curriculum programs that can grant aspiring startup entrepreneurs the needed training and plant the seed for early-stage investors that can support the next wave of graduates—helping address youth unemployment. Ciputra's leadership through online technologies has scaled up entrepreneurship training programs, even reaching the Indonesian diaspora. This sets an example of entrepreneurial thinking in policy for governments.
An interesting, less tangible legacy of this roundtable was related to entrepreneurship "semantics." With an overwhelming majority of employment in most nations coming from small and medium size companies (SMEs), countries have typically discussed entrepreneurship in terms of assistance to grow the SME sector. By doing this, they completely miss the point that job creation is fueled primarily by young firms that grow as opposed to a plethora of firms that never scale. Data is emerging that shows startups are much more than a drop in the bucket for economies around the world. They create jobs faster than other companies and in the case of the U.S. they are responsible for all net new jobs.
In this regard, in his keynote at the event, Dato' Badlisham Ghazali, CEO of Malaysia's Multimedia Development Corporation, made it clear that there is a need to differentiate between 'necessity entrepreneurs' and 'opportunity entrepreneurs.'
"Necessity entrepreneurs exist because there are no other options and their entry into business is unplanned," Ghazali said. "Opportunity entrepreneurs, on the other hand, are individuals who see business possibilities and potentials that are currently unexploited. These are the major drivers of economic growth."
In that context, several issues were brought to the table, such as the fact that Malaysian patenting is broken to the point where entrepreneurs seeking to commercialize end up doing so in other countries. While drawing such distinctions within the United States has been commonplace, this is very advanced thinking for emerging economies like Malaysia.
The Policy Roundtable in Kuala Lumpur advanced the shared goals of a "new" look at entrepreneurship. It nudged governments to better and more effectively pull policy levers to hone in on what might be the essential policy pieces of their entrepreneurial ecosystems and establishing a continuous dialogue with like-minded policy advisors on new practices.
Governments are traditionally linear in their thinking, yet entrepreneurship dynamics are messy. Interactions between policymakers and entrepreneurs serve as a reminder that policy work is more profound and impactful than we give it credit. Setting such gatherings like the Policy Roundtable in Kuala Lumpur within broader conversations among entrepreneurs can narrow that chasm.
This is the reason that a new global network of policymakers, announced by U.S. Secretary of State John Kerry, is forming and why they will meet for the first time in Moscow on March 17, 2014, at the Global Entrepreneurship Congress. The Global Entrepreneurship Research Network (GERN) will convene alongside the Startup Nations policy network, developed by Cristina Fernandez at GEW, offering those seeking to test smart ideas from around the world an opportunity to interface with their authors. From Start-Up Chile to the Startup Act in Italy, the community offers an unofficial means of accelerating policy efforts to support high growth entrepreneurship. Following that, Startup Nations will then convene again during Global Entrepreneurship Week in November 2014 as guests of Korea.
Both the policy and research groups will have an opportunity to discuss policy formation in the presence of actual entrepreneurs. These conversations will make for a more timely assessment of the actual barriers that matter to entrepreneurs and a considerably more representative timeline for action—without which it is hard for bureaucrats to gain interest let alone buy-in from their startups. The leaders of the summit in Kuala Lumpur should be pleased to have enabled these groups to set sail. Conferences don't always achieve much. This one did.


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Mint Petals
Added Nov 9, 2009
by ashchaser
Nashville, Tenne...
Lately I have become obsessed with fabric origami, creating numerous flowers and other shapes in my free time, yet this is my favorite! I first saw the design on a Derecuny dress I put in my notebook and it took a few hours to get the shape right but I finally figured it out and this was the first piece that looked awesome. I got the fabric from my grandmother's leftover quilt pieces, and it turned out quite nicely!
Soon I plan to create a little how to on the petals, once I get my act together…
Material Notes
no pattern….just me and a hellalot of patience
Related Techniques
- For
- Women
- Garment Type
- Accessories
- Style
- Bridal, Casual, Classic, Evening Wear, Ethnic, Goth/Gothic Lolita, Mod, Other, Romantic
- Material
- Cotton
11 Comments Sign in to add a post
May 11, 2010, 06.23 AMby Ralf Schmitz
looking around for some insipration for a fabric rose i found this and LOVE it! fantasitc choice of material AND great style!
Mar 18, 2010, 12.09 AMby helenadoll
the colour looks so good with red hair… I may have to copy you :P
Feb 18, 2010, 09.36 AMby craziemirrie
Beautiful! It really suits you.
Feb 4, 2010, 03.20 PMby rebeccalady
that is soooo pretty! it compliments your color like crazy haha
Nov 21, 2009, 02.42 PMby maria-jose-bon
this is very unique! I hope i can give it a try.. i'm usually not that good at folding…
Nov 19, 2009, 10.56 PMby imperfections
Ohhhh!! I love your origami!
Great way to update boring old flower petals. I love it when someone steps out and mixes it up.
Great work!!
Nov 15, 2009, 03.33 AMby alekat
wow this is so good. and it matches your lovely red hair so well. so clever
Nov 13, 2009, 08.17 AMby Shalyn McFaul
Where is it? I thought it was the Make Fabric Origami thing, but that doesn't look like it.
1 Reply
Nov 13, 2009, 02.45 PMby ashchaser
I accidentally created it as a part of this project, just go to the top of this page and right under the name "mint petals" are two tabs- main, and instructions, et viola!
Nov 11, 2009, 11.04 PMby ashchaser
alright! a how-to has been added, enjoy!
Nov 9, 2009, 08.07 PMby ladysophie
Wow you clever girl, that is amazing!! I so love it, nice job. I would love to make one too, and would be very grateful for a how to.
Nov 9, 2009, 05.10 PMby lunatepetal
pretty! love the color too :)
yeah, a how-to would be awesome!!
Add to Favorites 189 people added it
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When NFL commissioner Roger Goodell called out his name as the 27th pick in the first round of the NFL draft, four words crossed my mind:
Connecticut Kid. America's Team.
As Goodell posed there late Thursday night in Chicago with Byron Jones, the two holding up a Dallas Cowboys jersey, the same four words resounded:
Connecticut Kid. America's Team.
It was only some time later, while watching the video of Jones' media session at the draft in Chicago that two more words would cross my mind:
Aaron Hernandez.
"If you had to thank one person who would that be and why?" the defensive back from UConn and New Britain was asked.
"One person?...


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SplashTop On Notebooks, Desktops: Tomorrow DeviceVM's SplashTop product will be officially unveiled but since posting our original article on this technology and later an ASUS update, we have learned some new details about this instant-on Linux desktop environment. Specifically, yesterday a private briefing was held with David Speiser (DeviceVM's VP of Marketing), Thomas Deng (DeviceVM's CTO), and Andrew Kippen (Stage Two Consulting), where new details were shed on the technical workings of SplashTop and its future.
Copyright © 2018 by Phoronix Media. All rights reserved.


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X-Ring Newsletter
Technical Newsletter From Your Ballistic TechniciansVolume 7, Issue 3
| Most shooters have heard about "SD" (Sectional Density), and some talk about it but, very few have any idea just what it is. Usually the higher SD is associated with deeper bullet penetration, however, that is not necessarily true, as you will see in the following example.
Sectional Density is a number calculated from a fairly simple formula: weight of bullet in grains divided by 7000 (# of grains in a pound), then divided by the squared diameter of the bullet. This answer is the sectional density on any bullet of this weight and diameter, regardless of construction!!!!!!
|For example: 150 grain .308" diameter - start with 150 divided by 7000 = .0214285. This answer divided by the diameter squared (.308 times .308) = .094864 gives a problem to calculate as thus: .0214285 divided by .094864 solved as .2258865; rounding this answer to 3 digits gives .225 as the sectional density of any .308" 150 grain bullet. The point is that this could be a .30-30 flat nose or FMJ design or a soft point-they will all have the same "SD". So, a projectile having a higher SD may or may not penetrate better-think of construction and application for bullet usage.
|Attention Sierra INFINITY Exterior Ballistic Software program and Sierra INFINITY Suite owners!! The newest UPDATE is available in the Software section of our web site (www.sierrabullets.com). Simply follow the prompts to download and install the newest bullet and ammunition databases to your program.
| In the course of a little office discussion, the question was raised as to the reason that reloading is attractive. Savings was mentioned, as also was mentioned the fact that as a hobby the rewards were tremendous. We decided to run a comparison on costs of ammunition, factory vs. reloaded, to see what the savings would be. As can be seen
|from the table, savings is considerable, and can also be even increased with the use of fired brass. Talk about bliss, a hobby that saves you money, allows you to enjoy the other benefits of increased accuracy, ammo tailored to the firearm, and the ability to enjoy your sport even more.


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A wide range of easy-to-fit attachments can save you time, reduce costs and create a multi-functional machine. With Steelwrist® tiltrotators, lightweight quick couplers, durable buckets and breaker, the Volvo Wheeled Excavators can dig, load, break and move material in the most efficient and productive way.
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Guarantee performance by keeping your machine a Volvo. We know that every part is vital and help you maximize uptime in the long run through Genuine Volvo Parts.Genuine Volvo Parts


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The way some McHenry County Board members appear to see it, our property taxes keep going up because we don't make the time to make our voices heard by the 10 gazillion governments on our bills.
I've heard this more than once from more than one County Board member in the months that I've dropped in on their budget task force, which wrapped up on Friday, the same week that we all got those tax bills.
Those board members do have a very good point – county government makes up about 10 percent of our bills, and the county is only the collector for what the schools (by far the largest chunk), municipalities and others decide to levy and spend.
But allow me to make a very good counterpoint, or rather the eight counterpoints to which I will be paying an arm and a leg in two easy installments of an arm in June and a leg in September.
Bear with me here – for once, just this once, darn it, I'm going to have a laugh instead of a cry on account of my bill.
On the planet where some county officials apparently keep at least a part-time residence, it's realistic for us to go to the meetings of every government on our tax bills to keep an eye on them and beg them, pretty please, to quit being so profligate with other people's money.
There are 290 property taxing bodies in McHenry County according to the assessor's office, but let's go through my bill and see just how realistic it is for me to keep tabs on the ones relevant to my checkbook:
• Let's start with the County Board, which meets on the first and third Tuesdays of the month, with the first meeting at 9 a.m. and the second at 7 p.m. Not so bad yet ...
• Now for the schools, Districts 47 and 155, which make up the biggest share of my tax bill. District 155's school board meets at 7 p.m. on the third Tuesday of the month, same time as County Board. So I guess my wife and I split forces – I go to one and she goes to the other.
District 47's board also meets the third week of the month, but not always on the same day – variety is the spice of life, I guess. If we end up with a three-meeting Tuesday, I have no idea what to do short of sending Fred and Ginger to the third, but while my Siamese cats are smart, taxes go right over your head if your job is to sleep 16 hours a day.
• The village board of Lakewood, where I live, meets at 7 p.m. on the second and fourth Tuesday of the month. So if the Cravers want to keep an eye on government spending, I guess Tuesday night is Meeting Night.
• Grafton Township meets on the second Thursday of the month. Sure, it's only one meeting a month, but my goodness. I'd want hazard pay for sitting through one of those.
• The McHenry County Conservation District board meets the third Thursday of the month, as does the Crystal Lake Park District board. Again, I guess my wife and I have to split our forces, and play rock-paper-scissors to see who has to drive to Woodstock to keep an eye on the conservation district.
• The McHenry County College Board of Trustees meets at 7 p.m. every fourth Thursday, so I guess that means that both Tuesday and Thursday are Meeting Night at the Craver household.
But wait! I haven't counted the meetings of the aforementioned governments' numerous committees and subcommittees in which many of the financial decisions are deliberated and made.
As a 15-year veteran of covering Illinois governments, I can say with plenty of experience that if you do in fact make the time to go to a government meeting the night of the budget vote to complain, you'll get a condescending look from the board president, who will ask you where you were at the last dozen committee meetings over which the budget was hashed out.
And because I'm a firm believer in overkill when dispelling government arrogance is concerned, allow me to throw another monkey wrench into this grand idea of more community involvement in government. Under state law, almost all of these taxing bodies operate on different fiscal calendars.
The county's fiscal year starts in December, and the fiscal year for the schools and the community college starts in July. The fiscal year starts in May for our municipalities and park districts, and in April for our townships. It also starts in April for the conservation district, but state law gives them the right to delay budget approval until the end of the first quarter.
In short, in some County Board members' eyes, the only way to lower your taxes and save your homes is to never spend time in them by going straight from work to all these government meetings. If it's any consolation, the era of smart phones will allow your spouse or babysitter to send you videos of all the milestone moments of your children's first words, first walk, school play, birthdays, etc., that you'll be missing.
To be fair to county officials, I bounced their idea off of an irate taxpayer or two who reached out to me for my tax story that ran today. I asked Joe Greenwood, of Lake in the Hills, what bodies he pays into (and he's mighty sore that that his tax bill went up $1,000).
While I pay into eight bodies, he pays into almost a dozen - the taxing body mishmash of Lake in the Hills also has him in two park districts, a library districts and a sanitary district. I asked the married father of two teenage boys whether he intended to start fighting his tax bill by going to the monthly meetings of all 11 districts on his bill.
"I would love to do that, but I have to work 10, 12 hours a day to pay these property taxes, so I can't do that, no," Greenwood told me.
This convoluted system means that we the people can't stay involved in government. And for the record, we the people didn't come up with this system in which anything from a cemetery with three headstones to a mosquito spray truck can become its own tax district.
They the government did that, with the express intent of draining us all dry. And quite frankly, any taxpayer who has the free time to sit through all the meetings on their tax bill don't shouldn't get a pat on the back - they should get a gift card to Hobby Lobby.
Again in the County Board's defense, they're feeling pressure because the county's name is on those tax bills. With all 24 seats up for election because of redistricting, board members are feeling the pressure from irate constituents over other governments' taxation, and it was showing at Friday's meeting. Board members took turns venting about the public (we wish they understood the tax process), the state (those idiots are making rules about running our ship while theirs is sinking), and of course, the media (boy it would be great if Mr. Craver and the Northwest Herald Editorial Board acted as our unpaid shills).
I don't care about County Board wisecracks, so long as they didn't hold an illegal closed meeting, playing musical chairs to avoid a quorum, to come up with them. And no thanks on the unpaid shill offer - the county's unpaid shilling for Rohm and Haas since the McCullom Lake brain cancer lawsuits started showed me firsthand what that sort of thing does to one's reputation.
But to be clear, the idea that the key to lowering our tax bills is to go to these umpteen governments on our bills when we're not working or sleeping is the silliest thing I've ever heard.
For once, though, this silly idea made me laugh instead of cry over my property tax bill. And for that, County Board, I salute you.
Senior Writer Kevin Craver can be reached at email@example.com.


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Review: Magnetism Studios Tile Sudoku
Company: Magnetism Studios
Website: www.Magnetismstudios.com
Title: Tile Sudoku
Players: One
Price: $5
Compatible: iPod touch, iPhone, iPhone 3G
On August 1, 2008, iLounge published iPhone Gems: Every Sudoku Game, Reviewed, a feature article looking at 23 different Sudoku releases for the iPhone OS. This review focuses on Tile Sudoku ($5) by Magnetism Studios; you can read the full article, with screenshots of all of the games together, through the link above. A collective screenshot below shows you some of the other Sudoku interfaces you can expect to find in these titles.
If you're reading this article, you probably already know that Sudoku is a one-screen puzzle game based upon a 9-by-9 grid that's partially filled with numbers. The objective is to fill the empty spaces of the grid with single digit numbers so that the same digit does not appear twice on any horizontal or vertical line. Additionally, the same number should not appear twice in any of nine 3-by-3 mini grids on the screen.
iLounge's top-ranked Sudoku games are ones that offered fully-functional renditions of the game, with impressive interfaces, bonus features, user customization, and pricing as of the time we tested them. The fewer of these features a given game had, the lower it rated. While updates to these games may well be released over time, and their features may change, we couldn't wait around forever for bad or so-so titles to catch up with ones that were already good or great.
Tile Sudoku is a simple but clean-looking version of the game, where the numbers are on tiles rather than a traditional grid. The only frills here are your ability to drag and drop tiles into positions on the board, and an option to show you only tiles that might work on a given spot. Double-tapping on a spot on the board lets you do pencil-style possibility marking, which doesn't really fit with the visual theme of the game, but at least it's in there. Simple sound effects overlap your iPod mode audio. While this game strikes us as overpriced relative to its competitors, the reason that it didn't rate higher, it's not bad, and at least has nice graphics on its side.
Editors' Note: iLounge only reviews products in "final" form, but many companies now change their offerings - sometimes several times - after our reviews have been published. This iLounge article provides more information on this practice, known as revving.