Charitable Remainder Trusts May Be the Perfect Solution for These Situations

Consider suggesting one of these charitable remainder trusts to your donors as a way to accomplish personal and charitable goals simultaneously.

1. The Bridge to Retirement CRT: Use a term of years CRT to provide a donor with income and a tax deduction until he or she is required to take retirement plan distributions.

2. The Golden Years CRT: Use highly appreciated assets to fund a 5 percent unitrust that could provide a growing income stream in the future and near-term tax deductions.

3. The Honor Thy Mother and Father CRT: Take care of aging parents with a tax-advantaged plan that provides them with an income and the donor with tax savings.

4. The Children’s Education CRT: Instead of paying tuition from after-tax dollars, use a term of years CRT to provide an income stream for the educational needs of a donor’s children or grandchildren while the donor receives an income tax deduction.

5. The Art Appreciation CRT: Turn that Renoir or other valuable collectible into an income stream based on the full value of the item without the loss of up to 31.8 percent due to higher capital gains tax on personal property combined with the Additional Medicare Tax.

6. The Flip CRT: Fund a CRUT with assets that are difficult to value or sell and receive income for life or a term of years following the sale of the property.

Note: Income, gift, estate and other tax consequences will vary depending on the circumstances.

To learn more about how charitable remainder trusts can help donors make meaningful gifts while meeting other personal goals, consider attending one of Sharpe Group’s popular seminars. Visit for details.

Posted in .