TAX INCENTIVES & OTHER BENEFITS OF A CHARITABLE REMAINDER TRUST
Posted: February 09, 2018
If you wish to offer a significant gift to charity, you may want to consider a charitable trust. Since 1969, countless families have used charitable remainder trusts (CRTs) to increase their incomes, save taxes and benefit charities.
A CRT allows you to convert a highly appreciated asset, such as a stock or real estate, into a lifetime income. It essentially reduces your taxes now and estate taxes when you pass away. Additionally, you pay no capital gain tax when the asset is sold and lets you help one or more charities that have special meaning to you.
In order to set up a CRT, you need to initially establish a trust and transfer to that trust all the property that you wish to donate to charity. The charity you select must be approved by the Internal Revenue Service (IRS), which typically means that the charity must be exempt from taxes.