Wealth Preservation_Flipbook_2024

Flow of a Charitable Remainder Trust Charitable organization Donor Assets Remaining assets Annual income Death of donor or beneficiary Trust Charitable Remainder Trust A charitable remainder trust (CRT) may enable you to structure a charitable gift so that you receive not only a tax deduction but also a financial benefit during your lifetime. You would transfer money, securities, property, or other assets to the trust; name the charitable organization as the first beneficiary; and designate an income beneficiary — yourself or anyone else you choose — to receive income from the trust. The income payments must be made at least once a year and could last for a fixed term (not exceeding 20 years), for your lifetime, or for the lifetime of your surviving spouse or other designated beneficiary. Income payments might be fixed or variable, depending on the trust; the trust income is generally taxable. In the year that your gift is put in a CRT, you may qualify for an income tax deduction based on the estimated present value of the remainder interest that will eventually go to the charity. Upon your death (or the death of your spouse or designated beneficiary), the remaining trust assets go to the charity.