More examples in Estate Planning/Trusts
Charitable Remainder Trust (CRT) Example
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CHARITABLE REMAINDER TRUST (CRT) Charity (-ies) You and spouse
(if married) Income Beneficiaries
During Your Lifetime Upon death,
Charity receives
residual of trust
assets (bypasses
children) Interest
Payments
from Trust Irrevocable trust
No capital gains taxes -- ideal for highly appreciated assets, like real estate
Can be combined with other strategies, such as Legacy Trusts Under certain conditions, may serve as trustee of the CRT to maintain full investment control of the assets
Income tax deduction in the amount of the present value of the remainder interest to the charity No contribution limits (ideal for retirement planning strategy)
May change charitable beneficiaries at any time Income can be drawn at a percentage determined by you, but generally not to exceed 10% each year
(if married) Income Beneficiaries
During Your Lifetime Upon death,
Charity receives
residual of trust
assets (bypasses
children) Interest
Payments
from Trust Irrevocable trust
No capital gains taxes -- ideal for highly appreciated assets, like real estate
Can be combined with other strategies, such as Legacy Trusts Under certain conditions, may serve as trustee of the CRT to maintain full investment control of the assets
Income tax deduction in the amount of the present value of the remainder interest to the charity No contribution limits (ideal for retirement planning strategy)
May change charitable beneficiaries at any time Income can be drawn at a percentage determined by you, but generally not to exceed 10% each year