Charitable remainder trust

(redirected from Charitable Remainder Trusts)
Also found in: Legal.

Charitable remainder trust

An irrevocable trust that pays income to a designated person or persons until the grantor's death, when the income is passed on to a designated charity. A charitable lead trust by contrast allows the charity to receive income during the grantor's life, and the remaining income to pass to designated family members upon the grantor's death.

Charitable Remainder Trust

An irrevocable trust in which the grantor deposits assets with the income from the investment of these assets given to beneficiaries for a certain period of time. After the time expires, the remainder of the assets and income are donated to charity. A charitable remainder trust allows the grantor to provide for his/her survivors after death while reducing to a minimum the estate tax because the assets are ultimately directed to charity.

charitable remainder trust

A trust that pays an income to one or more individuals for a specified length of time then leaves the remainder of the trust to a designated charity. A charitable remainder trust can produce substantial tax benefits and is particularly suitable for use by a married couple with no children. Compare charitable lead trust.

Charitable remainder trust.

A charitable remainder trust (CRT) is an irrevocable trust designed to provide income to you or a beneficiary for either a fixed period or until the recipient dies. At that point, all remaining assets go to the charity named as ultimate beneficiary.

At the time you establish the trust, you can deduct the discounted present value of the assets as a charitable contribution. That value The value, which is calculated using IRS tables, may be less than the market value of these assets.

Transferring assets in a CRT not only reduces the value of your estate for estate tax purposes but also eliminates potential capital gains tax on any increased value of the assets.

References in periodicals archive ?
Example: If a donor creates a charitable remainder trust and funds it with a piece of artwork, the donor may not take a charitable income tax deduction for the contribution to the charitable remainder trust until the year the trustee sells the artwork.
If a client has been wavering about setting up a charitable remainder trust (or other tax-exempt trust), this might be enough to push him over the edge.
As stated previously, charitable remainder trusts are exempt from the Sec.
added, "The Real Estate Power Program ensures maximum tax benefits for donors and TERI, while also helping donors through the facilitation of charitable remainder trusts.
All of these goals may be accomplished by having the individual create a charitable remainder trust through which the property can be sold without incurring a taxable gain.
A charitable remainder trust is a tax-exempt way to distribute income from the trust to beneficiaries for a period of time after which remaining assets are distributed to charities of your choice You determine the time frame of the trust--it can last a lifetime or for a fixed term of up to 20 years--as welt as the amount of annual payouts.
Spousal Election Rights and Charitable Remainder Trusts.
Charitable remainder trusts are typically used in conjunction with wealth replacement trusts.
Unfortunately, it did not extend the safe harbor rules to include charitable remainder trusts.
LIKE MOST AMERICANS, donors to charitable remainder trusts (CRTs) are concerned they may outlive their retirement nest egg.
While charitable lead trusts (CLTs) first make a stream of payments to one or more charitable beneficiaries, then leave remaining trust assets to non-charitable beneficiaries, charitable remainder trusts (CRTs) do the opposite.
Look into options such as donor-advised funds, charitable remainder trusts, and giving circles.

Full browser ?