About Charitable Remainder Trusts
A Charitable Remainder Trust (CRT) is a planned giving tool that allows donors to make a significant charitable impact while also providing financial benefits to themselves or their beneficiaries.
This type of trust is an irrevocable arrangement in which a donor transfers assets into a trust that is managed and invested by a trustee. The trust pays income to designated beneficiaries for a set number of years or for their lifetime, after which the remaining assets are distributed to charity.
Types of Charitable Remainder Trusts
Charitable Remainder Annuity Trust (CRAT):
Fixed income stream based on a percentage of the initial asset value
Income stream does not change over time
Charitable Remainder Unitrust (CRUT):
Variable income stream based on a percentage of the trust’s value, revalued annually
If assets appreciate over time, the income stream will also increase
Benefits
- Reduce or eliminate capital gains taxes
- Retain an income stream for yourself or beneficiaries
- Create a lasting legacy that supports our mission
How it works
- Transfer assets (such as cash, securities, or real estate) into a trust, which is managed by a trustee.
- The trust pays income to designated beneficiaries (such as you, your spouse, or other individuals) for a set number of years or for their lifetime.
- At the end of the trust term, the remaining assets are distributed to one or more charitable organizations.
- Receive an income tax deduction for the present value of the charitable remainder interest in the trust.
- You may also be able to avoid or reduce capital gains taxes on appreciated assets that are transferred into the trust.
Learn more about Charitable Remainder Trusts
Consult with a qualified estate planning attorney and a financial advisor to determine if this option is right for you.
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