A Charitable Remainder Trust (CRT) allows you to donate appreciated assets to charity while receiving income for life or a term of years. You get an immediate tax deduction and avoid capital gains tax on the donated assets.

Types of CRTs

• CRAT (Charitable Remainder Annuity Trust): Pays a fixed dollar amount annually
• CRUT (Charitable Remainder Unitrust): Pays a fixed percentage of trust value, revalued annually
• NIMCRUT: Net Income with Makeup provision for retirement planning
• FLIPCRUT: Starts as NIMCRUT, flips to standard CRUT upon trigger event

Key Benefits

• Immediate charitable income tax deduction
• Avoid capital gains tax on appreciated assets
• Diversify concentrated positions tax-free
• Income stream for life or term of years
• Estate tax reduction
• Support favorite charities

Requirements & Limitations

• Minimum 5% annual payout (maximum 50%)
• Minimum 10% charitable remainder value
• Irrevocable once established
• Cannot be self-trusteed in most cases
• Subject to private foundation rules

Ideal Candidates

• Highly appreciated assets (stocks, real estate, business interests)
• Desire for lifetime income
• Charitable intent
• Estate planning goals
• Concentrated position diversification needs