Charitable giving can be the answer to your income needs. Not only can you benefit yourself, but you can also benefit your family and leave behind a legacy. A Charitable Remainder Trust (CRT) is an irrevocable trust designed to convert an investor's highly appreciated assets into a lifetime income stream without generating estate and capital gains taxes. CRT's have become very popular in recent years because they not only represent a valuable tax-advantaged investment, but also enable you to provide a gift to one or more charities that have special meaning to you.
Potential CRT benefits:
- Eliminate immediate capital gains taxes on the sale of appreciated assets, such as stocks, bonds, real estate and just about any other asset.
- Reduce estate taxes of up to 55% that your heirs might have to pay upon your death.
- Reduce current income taxes with a sizable income tax deduction.
- Increase your spendable income throughout the rest of your life.
- Create a significant Charitable Gift.
Avoid probate and maximize the assets your family will receive after your death.
When you establish a CRT, you or another beneficiary, such as your spouse or another family member, receive income from the trust for life or for a term of up to 20 years.
When the trust ends, the remaining assets pass to the Computer History Museum.