What is a Charitable Remainder Trust?
A Charitable Remainder Trust is an irrevocable Trust that cannot be amended or revoked, that allows the person who creates the Trust to give assets to a favorite charity but retain certain benefits such as income from the Trust during lifetime. One of the primary benefits of the Trust is the income tax deduction available to the person creating the Trust. Most often highly appreciated assets are transferred to the Charitable Remainder Trust, sold by the Trust without imposition of capital gain, and then reinvested in diversified assets.
