Charitable remainder trust


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Related to Charitable remainder trust: Charitable Lead Trusts

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 ?
Total distributions for charitable remainder trusts are calculated as the sum of distributions from each income source.
Charitable lead trusts are, in some ways, the reverse of charitable remainder trusts.
Charitable remainder trusts allow an individual to donate an asset to a charity and then generate a fixed or variable rate annuity on the value of that donation.
For more information on the allowable duration of charitable remainder trusts, see Internal Revenue Code sections 664(d)(1)(A) and 664(d)(2)(A).
This installment also examines the application of the exemption for annuity contracts to traditional estate planning arrangements such as charitable remainder trusts, grantor retained interest trusts and third-party, non-self-settled trusts.
Eric King, a Trust and Estate Consultant with The MassMutual Trust Company, FSB, a wholly-owned subsidiary of MassMutual, says the use of a Charitable Remainder Trust in combination with a Special Needs Trust is actually quite common because "the only possible non-person recipient of a Charitable Remainder Trust income stream is a Special Needs Trust.
In Dallas, the Baylor Health Care System Foundation also avoids the pooled income funds in favor of charitable remainder trusts and charitable lead trusts.
The charitable remainder trust is a huge opportunity to shelter low-cost basis assets from huge capital gains (taxes) and remove those assets from estate tax analysis.
Among the more popular are permutations of two traditional charitable donation plans: the charitable remainder trust and the charitable lead trust.
They were also setting up a charitable remainder trust, and helping AU supporters to include us as a beneficiary in their future financial plans.
THE CHARITABLE REMAINDER TRUST ALLOWS YOU TO DO THE FOLLOWING: ELIMINATE THE TAXABLE CAPITAL GAIN ON THE ASSETS, ELIMINATE FUTURE PROBATE FEES, REDUCE THE AMOUNT OF TAX YOU PAY IN THE CURRENT YEAR, CONTINUE TO RECEIVE THE INCOME FROM THE ASSET FOR THE REST OF YOUR LIFE, AND LEAVE A GIFT TO THE HEALTH SCIENCES CENTRE FOUNDATION UPON YOUR DEATH.
The concept behind a charitable remainder trust is to avoid both income and estate taxes, while benefitting a charitable organization.

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