A Charitable Remainder Trust (CRT) allows you to donate assets for the eventual benefit of Cancer League of Colorado Foundation while keeping the right to income from the trust for a specified period of time (life or a stated term of years).
- You can receive the income yourself or designate others to receive it instead.
- You can choose to receive the income immediately or defer it until a specific time in the future, such as retirement.
- You can fund the trust during life or through your estate.
The CRT is a flexible charitable planning tool and differing benefits can result from choices you make.
Since the donation is irrevocable (and deductable) once your assets are transferred into the trust, the CRT provides enormous income and tax planning opportunities. Strategic uses of a CRT can include:
- Supplementing retirement income
- Lowering current income taxes
- Reducing capital gains tax
- Shifting assets out of an estate
- Increasing current or future income from a low-yielding (yet highly appreciated) asset
- Providing heirs with an income rather than asset ownership
- Other uses/benefits may emerge as well.
A person’s individual circumstances will determine if, and how, a CRT might make sense.
The flexibility provided by a CRT makes it an attractive charitable estate planning tool in the right situations. However, it’s very important to remember that all transfers to a CRT are irrevocable. As such, when considering a CRT funded during lifetime, you must be confident that you will not need these assets in the future. Consultation with your financial and professional advisors is important.
Although further exploration of strategic CRT planning is beyond the scope of this website, we would be happy to speak with you to help explore this option (and we can also provide sample CRT calculations to review and share with your advisors). We also have a free CRT brochure that may be of help.
Please contact us at email@example.com with any questions at all.