Charitable Remainder Trust

A Charitable Remainder Trust (“CRT”) is a type of split interest gift for giving charity part of an asset, such as the future or residual value at death, while retaining another part of an asset, such as its present income interest.  A CRT is often used to support charitable intent with the benefit of avoiding capital gains tax on the sale of highly appreciated property.  In addition to supporting charitable causes, a Charitable Remainder Trust can result in income tax deductions, avoid capital gains tax, reduce estate taxes, and provide tax advantaged income.  They are often used in connection with Donor Advised Funds and as part of planned giving. The more successful the family, the more likely they are to have and use a CRT.