Charitable remainder trusts (CRTs) can be useful vehicles when leaving significant assets to charity, while ensuring income to noncharitable beneficiaries over the life of the CRT. If implemented correctly, this creates a win-win for both the charity and the noncharitable beneficiary. CRTs are irrevocable, which has the effect of removing the assets donated to the CRT from the donor’s estate. There can be additional significant tax advantages, including an income tax deduction, for the donor. However, CRTs require complex planning and management to avoid unnecessary costs and complications. It is essential that you speak with an attorney if you are considering a CRT as part of your estate planning.
-Emily A. Helmick, Esq.