An arrangement in which property or money is donated to a charity, but the donor (called the grantor) continues to use the property and/or receive income from it while living. The beneficiaries receive the income and the charity receives the principal after a specified period of time. The grantor avoids any capital gains tax on the donated assets, and also gets an income tax deduction for the fair market value of the remainder interest that the trust earned. In addition, the asset is removed from the estate, reducing subsequent estate taxes. While the contribution is irrevocable, the grantor may have some control over the way the assets are invested, and may even switch from one charity to another (as long as it's still a qualified charitable organization). CRTs come in three types: charitable remainder annuity trust (which pays a fixed dollar amount annually), a charitable remainder unitrust (which pays a fixed percentage of the trust's value annually), and a charitable pooled income fund (which is set up by the charity, enabling many donors to contribute).
Related information about charitable remainder trust:
- Frequently Asked Questions (FAQ) - charitable remainder trust
Frequently Asked Questions (FAQ). We specialize in the area of Charitable giving and have developed a complete turn key program to put your Charitable ...
- charitable remainder trust
charitable remainder trust .com offers a turn key A to Z solution to this popular estate planning concept.
- Charitable remainder unitrust - Wikipedia, the free encyclopedia
A charitable remainder unitrust is an irrevocable trust created under the authority of Internal Revenue Code § 664 ("Code"). This special, irrevocable trust (known ...
- Charitable Remainder Trust Definition | Investopedia
A tax-exempt irrevocable trust designed to reduce the taxable income of individuals by first dispersing income to the beneficiaries of the trust for a specified ...
- Charitable Remainder Trust Update
Charitable Remainder Trust Update. Although many investment assets have lost value in the past year, individuals coming to CPAs for estate planning advice ...
- What is charitable remainder trust? definition and meaning
Definition of charitable remainder trust: An arrangement in which property or money is donated to a charity, but the donor (called the grantor) continues to use ...
- Charitable Remainder Trust - Legal Dictionary - The Free Dictionary
charitable remainder trust (Charitable Remainder Irrevocable Unitrust) n. a form of trust in which the donor (trustor or settlor) places substantial funds or assets ...
- Charitable Remainder Trust | Planned Giving Design Center
Case Study: Using the Charitable Remainder Trust to Simulate a... Most charitable remainder trusts are created with the intention of providing an income stream ...