Charitable Remainder Trusts

Charitable Remainder Trusts (CRTs) can help you:

• Secure your own financial and cash flow needs with current income;
• Contribute to charity;
• Reduce or avoid capital gains taxes; and
• Obtain a tax deduction for additional tax planning purposes.

The CRT achieves these goals by creating a "split interest" in the property. One portion of the interest is the income generated by the trust for your benefit (the "income interest"), and the "remainder interest" is the principal remaining when the term of the CRT ends and the income stream ends. This remainder interest is for the benefit of the charity.

Here's how CRTs generally work. Note that there are several variations of CRTs which are not discussed in this brochure.

• Charitable Remainder Trusts are irrevocable trusts that are created with the help of an estate planning attorney.
• The trust will pay out a stream of income (the "income interest") to the donor or the trust beneficiaries that he or she designates, for the term of the trust.
• At the end of the term, whatever remains in the trust (the "remainder interest") goes to the charity designated in the trust document.