Charitable
Remainder Trusts
A Charitable Remainder Trust (CRT) can be a powerful estate planning, enabling generous individuals to make a real difference in their community, while creating an income source for their family members, diversifying their investments, and reducing capital gains and estate taxes.
Under the guidance of competent financial advisors, a donor creates a CRT, and funds it with cash and/or other assets. Specified payments may then be made from the trust. The “remainder” left after a defined period of (up to 20) years or throughout named beneficiaries’ lives then becomes the property of the named charity.
Since this “remainder” will be used for charitable purposes, a portion of the trust in eligible for a tax deduction in the year the trust is created. The trust may be funded with highly appreciated assets, avoiding capital gains; or with low-yielding assets, potentially increasing income.
There are also variations on this trust agreement – the uni-trust and ‘flip unitrust,’ for example – that can offer the donor other options and potential advantages.
As always, we strongly recommend that you consult your personal financial advisors, accountant, and lawyer before entering into any such agreement.
To learn more about charitable remainder trusts, the potential advantages of charitable estate planning, and special donor recognition available through The Knight Society, please contact Executive Director Chris Rollins, CFRE, at (609) 978-3081 or click here to contact us.
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