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 ?
The IRS generally does not issue rulings concerning whether a charitable remainder trust that provides for annuity or unitrust payments for one or two measuring lives or a term of years satisfies the requirements of IRC Section 664.
He is considering donating some of his shares to a charitable remainder trust for the future benefit of the American Cancer Society.
In order to deal with the fact that the assets in a charitable remainder trust will go to charity and not to the family, a "wealth replacement trust" is often used in conjunction with a CRT.
foundations and the federal regulations that apply to charitable remainder trusts.
Essentially the reverse of a charitable remainder trust, these pay the annual revenue stream to a charitable organization and, at term's end, the remainder reverts back to the donor's estate.
If you are around 70 years of age (or older) and have assets which are more valuable today than when you acquired them, then the Charitable Remainder Trust is something you may want to consider.
No such tax occurs with a charitable remainder trust.
It often takes potential donors a long time to decide to establish a charitable remainder trust.
Lieberman set up a Capital Asset Protection Plan using a Charitable Remainder Trust.
A charitable remainder trust must be in the form of either an annuity trust or a unitrust.
Do you know when to use a private foundation, a donor-advised fund, or a charitable remainder trust or other charitable vehicle?
Although a charitable remainder trust itself is exempt from the application of Sec.

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