What is a Charitable Remainder Trust (CRT)?
A Charitable Remainder Trust permits a grantor to defer the income tax consequences on the sale of a capital gain property and make a charitable gift. With a CRT, you irrevocably put assets (cash, securities, etc.) in a trust. The trust then provides income payments annually to you or a named beneficiary. Depending on how you set up the trust, the payments will continue for a fixed period of time, or until the death of the beneficiary. At that time, the remaining assets are transferred from the trust to the charity. Two common types are Charitable Remainder Annuity Trusts (a “CRAT”) and Charitable Remainder UniTrusts.
