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Charitable
Remainder Trusts (CRT's)
Benefits for the donor
include:
- Increased income
- Tax deductions
- Tax avoidance
- Charitable gifts
created
Benefits for the heirs
include:
- Full value of
estate transferred without taxes
Benefits for charitable
causes in the community:
- Community is
ultimately a better place to live
How a Charitable Trust Works
1.
Contribution
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Charitable Trust
(Tax-Exempt) |
 2.
Tax Deduction and Lifetime Income
3.
Assets at Death
The donor, working with an
attorney, establishes a charitable remainder trust document. Assets are
transferred to the trust. The donor receives an income tax deduction for the
gift and income from the trust. When the trust terminates all remaining
assets go to the named charity.
Who Can Be a Charitable Remainder Beneficiary
-
Public Charities
-
Community foundation segregated accounts
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Supporting organizations
-
Private foundations
Two Types of
Qualifying CRTs
-
Charitable Remainder Annuity Trust
-
Charitable Remainder Unitrust
-
Standard (SCRUT)
- Net
Income (NICRUT)
- Net
Income with Make-up (NIMCRUT)
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