About charitable remainder trusts
A charitable remainder trust (CRT) is a planned giving tool that allows donors to make a significant charitable impact while also providing financial benefits to themselves or their beneficiaries.
This type of trust is an irrevocable arrangement in which a donor transfers assets into a trust that is managed by a trustee. The trust pays income to designated beneficiaries for a set number of years or for their lifetime, after which the remaining assets are distributed to charity: water.
Types of charitable remainder trusts
Charitable remainder annuity trust (CRAT):
Fixed income stream based on a percentage of the initial asset value
Income stream does not change over time
Charitable remainder unitrust (CRUT):
Variable income stream based on a percentage of the trust’s value, revalued annually
If assets appreciate over time, the income stream will also increase
Benefits
- Reduce or eliminate capital gains taxes
- Retain an income stream for yourself or beneficiaries
- Create a lasting legacy of clean water
How it works
- Transfer assets (such as cash, securities, or real estate) into a trust, which is managed by a trustee.
- The trust pays income to designated beneficiaries (such as you, your spouse, or other individuals) for a set number of years or for their lifetime.
- At the end of the trust term, the remaining assets are distributed to one or more charitable organizations.
- Receive an income tax deduction for the present value of the charitable remainder interest in the trust.
- You may also be able to avoid or reduce capital gains taxes on appreciated assets that are transferred into the trust.
Consult a qualified estate planning attorney and/or a financial advisor to determine if this option is right for you, or contact us for more information.
Get in touch
If you have any questions for our team, we want to provide the best support for you. We’d be happy to speak with you about your giving goals — with no obligation.
Name: Kees (Case) Groenewegen
Title :Senior Key Relationships Officer, Legacy Giving
Phone: 646-688-2323
Already included us in your estate plan? Let us know.
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