I
107TH CONGRESS
1ST SESSION
H. R. 1796
To amend the Internal Revenue Code of 1986 to treat charitable remainder
pet trusts in a similar manner as charitable remainder annuity trusts
and charitable remainder unitrusts.
IN THE HOUSE OF REPRESENTATIVES
MAY 10, 2001
Mr. BLUMENAUER 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 chari-
table remainder pet trusts in a similar manner as chari-
table remainder annuity trusts and charitable remainder
unitrusts.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of the Internal Revenue Code
of 1986.
SEC. 2. CHARITABLE REMAINDER PET TRUSTS.
(a) CHARITABLE
REMAINDER
PET
TRUST
DE-
FINED.—Section 664(d) is amended by adding at the end
the following new paragraphs:
‘‘(5) CHARITABLE REMAINDER PET TRUST.—
For purposes of this section, a charitable remainder
pet trust is a trust—
‘‘(A) from which a sum certain is to be
paid, not less often than annually, for the exclu-
sive benefit of one or more pets (as defined in
paragraph (6)) for a term of years (not in ex-
cess of 20 years) or for the life or lives of such
pet or pets,
‘‘(B) from which no amount other than the
payments described in subparagraph (A) and
the taxes imposed pursuant to subsection (c)
may be paid to or for the use of any person
other than an organization described in section
170(c),
‘‘(C) following the termination of the pay-
ments described in subparagraph (A), the re-
mainder interest in the trust is to be trans-
ferred to, or for the use of, an organization de-
scribed in section 170(c), and
‘‘(D) the value (determined under section
7520) of such remainder interest is at least 10
percent of the initial fair market value of all
property placed in the trust.
‘‘(6) PET.—For purposes of a charitable re-
mainder pet trust, a pet is any domesticated com-
panion animal (including a domesticated companion
cat, dog, rabbit, guinea pig, hamster, gerbil, ferret,
mouse, rat, bird, fish, reptile, or horse) which is liv-
ing, and owned or cared for by the taxpayer estab-
lishing the trust, at the time of the creation of the
trust.’’.
(b) TAX ON ANNUITY DISTRIBUTIONS FROM CHARI-
TABLE REMAINDER PET TRUSTS.—Section 664(c) is
amended by inserting ‘‘, and except, in the case of a chari-
table remainder pet trust, that any distribution during
such year for the benefit of a pet (as defined in subsection
(d)) shall be taxable income of the trust for such year,
to the extent of the income of the trust for the year and
undistributed income of the trust for prior years after ‘‘ap-
plied to such trust)’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 170(f)(2)(A), section 2055(e)(2)(A),
and section 2522(c)(2)(A) are amended by striking
‘‘charitable remainder annuity trust or a charitable
remainder unitrust’’ and inserting ‘‘charitable re-
mainder 
annuity 
trust, 
charitable 
remainder
unitrust, or charitable remainder pet trust’’.
(2) Subsections (a) and (c) of section 664 are
amended by striking ‘‘charitable remainder annuity
trust and a charitable remainder unitrust’’ and in-
serting ‘‘charitable remainder annuity trust, chari-
table remainder unitrust, and charitable remainder
pet trust’’.
(3) 
Section 
664(e) 
and 
section
1361(e)(1)(B)(iii) are amended by striking ‘‘chari-
table remainder annuity trust or charitable remain-
der unitrust’’ and inserting ‘‘charitable remainder
annuity trust, charitable remainder unitrust, or
charitable remainder pet trust’’.
(4) Paragraphs (1) and (3) of section 664(f)
are amended by striking ‘‘(1)(A) or (2)(A)’’ and in-
serting ‘‘(1)(A), (2)(A), or (5)(A)’’.
(5) Section 2055(e)(2)(F) is amended by insert-
ing ‘‘or pet (as defined in section 664(d))’’ after ‘‘by
reason of the death of any individual’’.
(6) Section 2652(c)(1)(C) is amended—
(A) in clause (ii) by striking ‘‘within the
meaning of section 664, or’’ and inserting ‘‘,’’;
(B) by redesignating clause (iii) as clause
(iv); and
(C) by inserting after clause (ii) the fol-
lowing new clause:
‘‘(iii) a charitable remainder pet trust
within the meaning of section 664, or’’.
(d) EFFECTIVE DATE.—The amendments made
by this section shall apply to charitable remainder
pet trusts created after the date of the enactment of
this Act.
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