Charitable Remainder Trust

Charitable
Remainder Trusts (CRTs)
Made Easier

1

What is a Charitable Remainder Trust?

2

Assets You Can Put Into a Charitable Remainder Trust

3

How CRTs Can Create New Income Streams and Reduced Taxes

4

Who Can Benefit from a Charitable Remainder Trust?

5

What’s the Catch to Charitable Remainder Trusts?

6

How to Set Up a Charitable Remainder Trust from Start to Finish

7

Partner with the Charitable Remainder Trust Experts

Charitable Remainder Trusts: The Simple Strategy to Defer Taxes on Highly Appreciated Assets

Chances are that you want to create generational wealth for your family in the years following your death. If you have high-value assets now, you might consider selling them to contribute the proceeds to an account for this purpose. However, you might be subject to high taxes on these sales that can eat into what the asset is truly worth.

What can you do to protect your assets and pass on as much value as possible to yourself or to the next generation?

A charitable remainder trust could be the solution that you have been searching for. All of your highly appreciated assets that are exposed to taxes can be designated into this type of trust. Learn more about CRTs here to help you decide if this financial move is the right choice for you.

Charitable Remainder Trusts could be right for you if you’re concerned about:

Capital gains
taxes

Estate and
gift taxes

Depreciation
recapture

Required IRA<br/>distributions to<br/>beneficiaries

Required IRA
distributions to
beneficiaries

What is a Charitable Remainder Trust?

A Charitable Remainder Trust is a tax-exempt, irrevocable trust funded by donated assets. Payments continue for a specific term of up to several years or the life of one or more beneficiaries. After that period, the remaining trust assets pass to qualified charities you’ve selected or your family’s Donor Advised Fund (DAF).

What assets can you put into a Charitable Remainder Trust?

Any highly-appreciated asset with exposure to taxes and to which you have a clear title can be put into a Charitable Remainder Trust.

Antique/Vintage Cars

Stocks

Fine Art

Residential Real Estate

Coins & Stamps

Raw Land

Rare Instruments

Commercial Real Estate

How CRTs Created New Income Streams and Reduced Taxes

See the different outcomes of selling an asset outright versus establishing a Charitable Remainder Trust.

VINTAGE CAR CASE STUDY

REAL ESTATE CASE STUDY

Who can benefit from a Charitable Remainder Trust?

A couple or individual leaving large bequests to charity

A couple or parent who would like to leave a creditor-proof lifetime income stream to his or her children

Large estates facing estate, gift, and inheritance taxes that need to remove assets from the taxable estate

A family needing to diversify away from closely held stock, a highly-concentrated position in one stock, or large parcels of land

Owners of commercial property who have depreciated their property and/or have participated in a 1031 tax-free exchange

What’s the catch to a Charitable Remainder Trust?

There are two drawbacks to Charitable Remainder Trusts.

Irrevocability

Once assets have been transferred to the trust, you no longer have access to the entire principal. If your goal is to use the entire proceeds from the sale of your asset to buy a large ticket item like a yacht or horse farm, a Charitable Remainder Trust is probably not for you.

Initial Expenses & Ongoing Maintenance

The trust must be created by an attorney competent in irrevocable trusts, the assets need to be invested so there is liquidity and no violations of various rules, and annual tax forms must be filed. The annual maintenance costs (CPA, attorney, investment advisor) are paid by the trust itself after the initial trust creation.

Help to Protect your wealth with a Charitable Remainder Trust.

Download Your Charitable Remainder Trust Guide

GET YOUR GUIDE

How to Set Up a Charitable Remainder Trust from Start to Finish

The logistics of setting up your Charitable Remainder Trust require the coordination of three disciplines -tax, legal, and financial - and professionals experienced with charitable trusts.

1. Create