CHARITABLE REMAINDER TRUST
In the Charitable Remainder Trust (CRT) the donor (called the grantor) is making a gift of property or money to a charity, but the donor continues to use the property and/or receive income from it while living. The donor is the lifetime beneficiary and receives the income from the trust property. The charity receives the principal after the donor has passed on.
Federal tax benefits to the donor are substantial. First, he grantor avoids any capital gains tax on the donated assets. Highly appreciated capital assets are the class of property most often gifted. Secondly, the donor receives an income tax deduction for the fair market value of the remainder interest that is expected to pass to the charity. In addition, the asset is removed from the estate, reducing subsequent estate taxes.
Though the gifts to the trust are 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).
The Law Office of Alan Jay Ackerman can design a charitable gifting program which will enable you to realize your charitable intentions while providing substantial retirement income, capital gains and income tax benefits, and provide relief from the Federal Estate Tax.
