The Benefits of a Charitable Remainder Trust for Tax Savings

A Charitable Remainder Trust (CRT) is a powerful tool that allows you to make a charitable donation while enjoying significant tax benefits during your lifetime. 

Here’s how a CRT works and how it can benefit you:

✅ Tax Deduction: When you establish a CRT, you can receive an immediate charitable income tax deduction for the present value of the donation portion of the trust. 

This can significantly reduce your taxable income in the year the trust is created.

✅ Income Stream: While you donate assets to the trust, you can retain an income stream for a specified period (typically for your lifetime or a set number of years). 

This allows you to continue receiving income from the trust while benefiting a charitable cause.

✅ Capital Gains Tax Savings: The assets you donate to the CRT are sold within the trust, and because the trust is tax-exempt, it can sell appreciated assets without incurring capital gains taxes. 

This allows the trust to maximize the value of your donation.

✅ Supporting Charitable Causes: After the designated income period, the remainder of the trust’s assets go to the charity or charities you choose, ensuring that your philanthropic goals are met.

By using a CRT, you can support the causes you care about while also taking advantage of valuable tax savings. It’s a win-win for both you and the charity.

We specialize in educating and helping you protect what you have for the people you love the most. Contact us to learn more about how we can help.