Charitable remainder trust

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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 ?
The distributions schedule is completed only by charitable remainder trusts.
Because many of the rules that apply to private foundations also apply to charitable remainder trusts [CRTs-see section 4947 of the Internal Revenue Code (IRC)]--references to charitable remainder trusts are included throughout.
The study's main focus was to get a better understanding of levels of bequests, gift annuities and charitable remainder trusts (CRTs), and to identify the trends since a similar 1992 study.
Through Charitable Remainder Trusts, we help clients control this part of their capital that they normally can't keep.
He has successfully litigated matters involving estate tax apportionment, calculation of marital elective shares, trust terminations, abuses of trustee's discretion as well as fixing/determining deferred annuities of testamentary charitable remainder trusts.
With charitable remainder trusts and pooled income funds, the noncharitable beneficiaries receive the lead interests and the charities receive the remainder interests.
The legal and tax implications of private foundations, charitable remainder trusts and family limit-ed partnerships also affect how assets are invested.
There are three main types of split-interest trusts: charitable remainder trusts, charitable lead trusts, and pooled income funds.
The IRS has addressed the following issues: Timing of the charitable deduction in connection with gifts of stock options, gifts where the donor retains the ability to manage the gift property, final regulations concerning the charitable remainder trust characterization and ordering rules, and a controversial (and withdrawn) proposal concerning the impact of spousal elective share laws on the qualification of charitable remainder trusts.
Chapters contain information on reporting and substantiation requirements; estate tax, gift tax, and generation-skipping transfer tax; valuation, securities, life insurance, and real property; the effect of gift conditions and restrictions on charitable deductions; charitable remainder trusts and gift annuities; and tax return filing requirements.
These comprehensive capabilities make Schwab Charitable a leading choice for the establishment of charitable remainder trusts.
In previous years, data were collected from charitable remainder trusts only; beginning with 2000, data were also collected for charitable lead trusts and pooled income funds [1].

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