Charitable Remainder Trusts allow you to transfer assets to a trust, take an immediate tax deduction and receive an income for your lifetime. The size of the deduction varies with the age of the income beneficiaries. Charitable Remainder Trusts are used to guarantee a retirement income while making a significant charitable gift.
Charitable Remainder Trusts can be complex gifting strategies. However, they are an extremely effective tool for diversifying a highly appreciate security, obtaining an enhanced income from the gifted asset for life and permanently removing the remainder interest from the taxable estate of the donor.
Gifts made to Charitable Remainder Trusts are irrevocable; consequently, donors should carefully evaluate this strategy with tax and legal counsel prior to moving forward.