What is a split-interest entity?

A split-interest entity is a trust or fund that allows you to donate money and receive a benefit during your lifetime, or for a set period of time. Split-interest entities can only be funded with qualified charitable distributions (QCDs) and no other funds.

Examples include:

• Charitable Remainder Annuity Trust (CRAT)
• Chariable Remainder Unitrust (CRUT)
• Charitable Gift Annuity (must have fixed payments of 5% or greater)

A qualified charitable distribution (QCD) to a split-interest entity is only allowed once per person during their lifetime and is limited to $54,000 for 2025.

If you choose to make a one-time election to make a QCD to a split-interest entity (SIE), you'll need to mail your return and attach a statement to your return. Check box 3 on Form 1040 Line 4c and enter "SIE" in the entry space. Make sure your attachment includes:

1. That you haven't made the election in a prior tax year
2. That the QCDs are otherwise deductible under section 408(d)(8)(f)(iii)
3. That no person holds an income interest in an SIE other than the individual for whose benefit the account is maintained, their spouse, or both
4. That the income interest in the SIE is nonassignable
5. The total amount of the QCD(s) you made to an SIE that relate to your one-time election