If leaving a charitable legacy is important to you then a Charitable Remainder Trust may be for you. 

Core reasons for Charitable Remainder Trusts:

  • Create a Charitable Legacy                                 
  • Disinherit the IRS as a major beneficiary of your estate
  • Avoid Capital Gains
  • Significant Charitable Tax Deduction
  • Lifetime guaranteed income
  • Tax Free compounding on CRT asset growth
  • Totally Eliminate Estate Tax assessment
  • Protect Assets for Litigators and Creditors
  • Charitable Tax refund and income  saved capital gains furnish resources to replace CRT charitable gift to heirs.

 

 

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There are two main types Charitable Remainder Trust - Charitable Remainder Annuity Trust (CRAT) & Charitable Remainder Unit-trust (CRUT). This option is better left to an estate planning attorney, however below is some basic information.

  • Each year, a Charitable Remainder Annuity Trust (CRAT) pays the donor a fixed percentage of the value of the donated assets at the time those assets are placed in the trust. In other words, the income stream is stable over the life of the trust. For example, a donor creating a 20-year CRAT worth $100,000 would receive an annual income of $5,000, assuming the minimum required yearly payout of 5 percent.
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  • If you opt for a Charitable Remainder Unit-trust (CRUT), you’ll also select a fixed annual payout ratio of at least 5%. However, the actual dollar amount you’ll receive each year will fluctuate instead of remaining consistent. That’s because the assets held in a CRUT are revalued at the beginning of each year. Depending on financial market performance and how well the assets in your CRUT are managed, you might earn more - or less - money each year.