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Advanced Estate Planning: Charitable Planning

A Charitable Remainder Trust (or CRT) is a powerful tool that can provide an income stream from an illiquid asset, while deferring, and in some cases minimizing, income taxes. The structure of the CRT planning process is as follows:

  1. You transfer appreciated assets to a CRT you set up and receive a charitable income tax deduction.

  2. The CRT sells the assets you contributed and pays no income tax on the gain recognized.

  3. The CRT distributes cash to you (or any other beneficiary you name) over a number of years or for the beneficiary’s lifetime.

  4. Upon the termination of the CRT, the remaining assets pass to the charities you named.

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Learn more about charitable & philanthropic planning below. 

Charitable & Philanthropic Planning