What is a Charitable Remainder Trust?

A Charitable Remainder Trust (CRT) is an irrevocable trust that is designed to convert an investor's highly appreciated assets into a lifetime income stream without generating estate and immediate capital gains taxes.

Charitable Remainder Trusts have become very popular in recent years because they not only represent a valuable tax advantaged investment but also enable your to provide a gift to one or more charities that have special meaning to you.

By establishing a Charitable Remainder Trust, you can:

  • Eliminate immediate capital gains taxes on the sale of appreciated assets, such as stocks, bonds, real estate and other taxes;
  • Reduce estate taxes of up to 50% that your heirs might have to pay upon your death;
  • Reduce current income taxes;
  • Increase spendable income throughout your lifetime;
  • Make a significant future charitable gift;
  • Receive the benefits of tax-free compounding;
  • Avoid probate;
  • Maximize the assets your family will receive after your death.

How Does A Charitable Remainder Trust Work?

When the trust ends, the remaining assets pass to the qualified charity or charities of your choice. Here's how it works:

  • You irrevocably transfer cash, securities, or other property you own into a CRT; 
  • As a result of this transfer, you lower the taxable value of your estate and provide significant estate tax savings to your heirs; 
  • You select the type of CRT based on your individual needs.

We will be happy to discuss this plan further with you, your tax advisor or attorney. Please contact us today at:

1.800.992.2383. Ext. 10