Tailor income streams, diversify assets, and leave a lasting legacy through the flexibility of a Charitable Remainder Trust.
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
- Receive an immediate income tax deduction for the value of your contributions.
- 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 and invested by a trustee.
- Receive an income tax deduction for the present value of the charitable remainder interest in the trust.
- 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.