Charitable Remainder Trust
A charitable remainder trust is a tax-exempt and irrevocable gift instrument.
What Is a Charitable Remainder Trust?
A charitable remainder trust is an irrevocable and tax-exempt trust. For a defined measuring term (life or term of years), it provides income distributions to individuals who are named income beneficiaries. When the term ends, the remaining assets pass to the donor’s chosen charity or charities.
How Charitable Remainder Trusts Work for You
Fund With Complex Assets
Cash, public stock, real estate, business interest gifts, cryptocurrency, and more may be used to fund a charitable remainder trust.
Asset Management In Retirement
A charitable remainder trust eases tax reporting complexity, offers professional guidance, and takes on the heavy lifting involved in asset management.
Gift & Estate Planning
A charitable remainder trust protects your transferred assets from the burden of estate taxes, helping you maximize your impact.
Tax Savings
When a charitable remainder trust sells appreciated assets, it doesn’t pay taxes on the sale. Taxes are paid later by the beneficiaries when they receive income from the trust.
Increased Cash Flow
A charitable remainder trust allows you to sell highly appreciated assets without paying tax on the sale. The trust retains the full sale value to invest, producing increased cash flow for the named income beneficiaries.
An Immediate Income Tax Deduction
You may qualify for an immediate income tax deduction after contributing certain assets to a charitable remainder trust.
What You Can Do With a Charitable Remainder Trust
Learn more with our dedicated resources.
Funding a DAF or CRT Through an Estate
For a client who has long-term charitable objectives, the DAF and CRT offer sound options for testamentary giving.
The Difference Between Trusts and Donor-Advised Funds
The most popular giving vehicles are donor-advised funds and charitable trusts, but which one is the best for your charitable giving needs?
Pros & Cons of CRTs
Charitable remainder trusts can be used to establish a legacy that makes a difference. But, as with anything, there are pros and cons.
What Is a Charitable Remainder Trust?
Kevin McGrath, Vice President of Ren, shares important insights about how they can benefit donors.
Ideal Donor Profile
Owns Appreciated Assets
A charitable remainder trust can be funded with appreciated property, avoiding an immediate income tax liability to you as the donor.
Interested in Selling Real Estate
A charitable remainder trust can help offset capital gains taxes owed on sold real estate.
Wants to Provide for Family
Income generated by a charitable remainder trust can be used to acquire life insurance.
