Charitable Trust

Charitable remainder trust

SOLUTIONS

What is a Charitable Remainder Trust?

A charitable remainder trust (CRT) is a type of trust that provides income to the trust’s beneficiaries for a specified term of years or for their lifetimes. Upon the termination of the trust, the remainder of the trust’s assets are distributed to one or more charitable organizations.

How it Works

1

An individual transfers assets into the trust.

2

The trust sells the assets and invests the proceeds in a diversified portfolio.

3

The trust pays the beneficiaries an income stream, either for a specified term of years or for their lifetimes.

4

Upon the termination of the trust, the remaining assets are distributed to one or more charitable organizations.

Benefits

  • Provides income to the beneficiaries for a specified term of years or for their lifetimes.
  • Allows the individual to make a significant charitable gift and receive an income tax charitable deduction.
  • Provides an opportunity for the individual to reduce estate taxes and minimize capital gains taxes.

TOOLS AND SOLUTIONS

Charitable Remainder Calculator

Tax Planning

What’s Next?

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