I 

110TH CONGRESS 

1ST SESSION H. R. 2491 

To amend the Internal Revenue Code of 1986 to treat charitable remainder 

pet trusts in a manner similar to charitable remainder annuity trusts. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 24, 2007 

Mr. BLUMENAUER (for himself and Mr. RAMSTAD) introduced the following 

bill; which was referred to the Committee on Ways and Means 

A BILL 

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

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. TREATMENT OF CHARITABLE REMAINDER PET 

4 TRUSTS IN MANNER SIMILAR TO CHARI5 TABLE REMAINDER ANNUITY TRUSTS. 

6 (a) IN GENERAL.—Subsection (a) of section 664 of 

7 the Internal Revenue Code of 1986 (relating to general 

8 rule) is amended— 

9 (1) by striking ‘‘annuity trust and’’ and insert10 ing ‘‘annuity trust,’’, and 

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1 (2) by inserting ‘‘, and a charitable remainder 

2 pet trust’’ before the period at the end. 

3 (b) INCOME TAX TREATMENT.—Subsections (a) and 

4 (c) of section 664 of such Code (relating to exemption 

5 from income taxes) are both amended— 

6 (1) by striking ‘‘annuity trust and’’ and insert7 ing ‘‘annuity trust,’’, and 

8 (2) by inserting ‘‘, and a charitable remainder 

9 pet trust’’ after ‘‘unitrust’’. 

10 (c) CHARITABLE REMAINDER PET TRUST DE11 FINED.—Subsection (d) of section 664 of such Code (re12 lating to definitions) is amended by adding at the end the 

13 following new paragraphs: 

14 ‘‘(5) CHARITABLE REMAINDER PET TRUST.— 

15 For purposes of this section— 

16 ‘‘(A) IN GENERAL.—A charitable remain17 der pet trust is a trust— 

18 ‘‘(i) from which a sum certain (which 

19 is not less than 5 percent nor more than 

20 50 percent of the initial net fair market 

21 value for all property placed in trust) is to 

22 be paid, not less often than annually, to a 

23 designated person or organization, or a 

24 successor designated person or organiza25 tion, for the exclusive benefit (but allowing 

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1 for payment of any income tax resulting 

2 from the payment) of one or more specified 

3 pets for a term of years (not in excess of 

4 20 years), such payments to terminate at 

5 the earlier of the expiration of the term of 

6 years or the death of the last surviving 

7 specified pet, 

8 ‘‘(ii) from which no amount other 

9 than the payments described in clause (i) 

10 and the taxes imposed pursuant to sub11 section (c) may be paid to or for the use 

12 of any person other than an organization 

13 described in section 170(c), 

14 ‘‘(iii) following the termination of the 

15 payments described in clause (i), the re16 mainder interest in the trust is to be trans17 ferred to, or for the use of, an organization 

18 described in section 170(c), and 

19 ‘‘(iv) the value (determined under sec20 tion 7520) of such remainder interest is at 

21 least 10 percent of the initial fair market 

22 value of all property placed in the trust. 

23 ‘‘(B) VALUE OF REMAINDER INTEREST.— 

24 For purposes of determining the value of the 

25 remainder interest of a charitable remainder pet 

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1 trust, the pets’ life expectancy shall be dis2 regarded. 

3 ‘‘(C) PET.—A pet is any domesticated 

4 companion animal (including a domesticated 

5 companion cat, dog, rabbit, guinea pig, ham6 ster, gerbil, ferret, mouse, rat, bird, fish, rep7 tile, or horse) which is living, and owned or 

8 cared for by the taxpayer establishing the trust, 

9 at the time of the creation of the trust.’’. 

10 (d) CONFORMING AMENDMENTS.— 

11 (1) Sections 170(f)(2)(A), 2055(e)(2)(A), and 

12 2522(c)(2)(A) of such Code are each amended by 

13 striking ‘‘charitable remainder annuity trust or a 

14 charitable remainder unitrust’’ and inserting ‘‘chari15 table remainder annuity trust, charitable remainder 

16 unitrust, or charitable remainder pet trust’’. 

17 (2) Sections 664(e) and 1361(e)(1)(B)(iii) of 

18 such Code are both amended by striking ‘‘charitable 

19 remainder annuity trust or charitable remainder 

20 unitrust’’ and inserting ‘‘charitable remainder annu21 ity trust, charitable remainder unitrust, or charitable 

22 remainder pet trust’’. 

23 (3) Paragraphs (1) and (3) of section 664(f) of 

24 such Code are both amended by striking ‘‘paragraph 

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1 (1)(A) or (2)(A)’’ and inserting ‘‘paragraph (1)(A), 

2 (2)(A), or (5)(A)(i)’’. 

3 (4) Section 2055(e)(3)(F) of such Code is 

4 amended by inserting ‘‘or pet (as defined in section 

5 664(d)(5)(C))’’ after ‘‘by reason of the death of any 

6 individual’’. 

7 (5) Section 2652(c)(1)(C) of such Code is 

8 amended— 

9 (A) in clause (i) by inserting ‘‘within the 

10 meaning of section 664’’ before the comma at 

11 the end, and 

12 (B) by striking ‘‘or’’ at the end of clause 

13 (ii), by redesignating clause (iii) as clause (iv), 

14 and by inserting after clause (ii) the following 

15 new clause: 

16 ‘‘(iii) a charitable remainder pet trust 

17 within the meaning of section 664, or’’. 

18 (e) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to charitable remainder pet trusts 

20 created after the date of the enactment of this Act. 

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