How do I determine what kind of assets should not be given to my trust?

The primary considerations in determining which assets are best left out of your trust are: Will it be difficult to establish a fair market value for the gift? Is the asset encumbered by debt? Does the asset have the potential of producing unrelated business taxable income that could jeopardize the status of the trust? In general, professional corporations, partnership interests, and sole proprietorships should not be given to a Charitable Remainder Trust without considerable thought and the advice of experienced professionals. The trustee should be cautious when investing in assets which are difficult to value. Tangible personal property, trading on margins, listed options, installment obligations, and real estate investment trusts are not ideal trust assets. In addition to being difficult to value, some of these types of assets can create debt obligations or unrelated business taxable income which can jeopardize the charitable status of the trust.