charitable remainder trust


An arrangement in which property or money is donated to a charity, but the donor (called the grantor) continues to use the property and/or receive income from it while living. The beneficiaries receive the income and the charity receives the principal after a specified period of time. The grantor avoids any capital gains tax on the donated assets, and also gets an income tax deduction for the fair market value of the remainder interest that the trust earned. In addition, the asset is removed from the estate, reducing subsequent estate taxes.
While the contribution is irrevocable, the grantor may have some control over the way the assets are invested, and may even switch from one charity to another (as long as it's still a qualified charitable organization). CRTs come in three types: charitable remainder annuity trust (which pays a fixed dollar amount annually), a charitable remainder unitrust (which pays a fixed percentage of the trust's value annually), and a charitable pooled income fund (which is set up by the charity, enabling many donors to contribute).

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It was going to be donated to charity in the future and that meant that it would be a charitable remainder trust.

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The charitable remainder trust was a gift made by the millionaire who still needed to occasionally use the property for personal reasons.

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Mr. Lucas put the whole of the ranch into a charitable remainder trust, much to the surprise of both fans and the onsite security meant to stop them.

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charitable lead trust spousal remainder trust