What is a charitable remainder trust
A charitable remainder trust (CRT) is a type of trust that allows the creator of the trust (the grantor) to transfer assets to the trust and receive income from the trust during their lifetime or for a fixed term. Upon the expiration of the term or the death of the grantor, the remainder of the trust assets will be distributed to one or more charitable organizations.
CRTs can be used to achieve a number of different objectives, including reducing tax liability, providing an income stream for the grantor, and supporting charitable causes. There are two main types of CRTs: charitable remainder annuity trusts (CRATs) and charitable remainder unitrusts (CRUTs). CRATs pay a fixed amount of income to the grantor, while CRUTs pay a variable amount of income based on the value of the trust assets.
CRTs can be complex legal instruments and should be carefully considered with the help of an attorney or other professional. If you are interested in creating a CRT, you should consult with a qualified attorney or financial advisor to determine whether a CRT is the right choice for you and to help you navigate the process of establishing the trust.