A Charitable Remainder Trust (CRT), also known as a Capital Gains Bypass Trust, provides donors with the dual benefit of supporting charitable causes while securing a steady income stream. When a donor places assets into a CRT, they can receive income for a specific term, which can be for life or a set number of years.
This income is generated from the trust’s assets, which are often sold and reinvested in a diversified portfolio to produce income. The donor can choose between a fixed annuity payment or a percentage of the trust's assets, which are revalued annually. This income can be particularly valuable for individuals in retirement, offering financial security while allowing them to continue supporting their favorite charities.
The flexibility in structuring the income stream makes CRTs a versatile tool for financial planning, allowing donors to balance their immediate financial needs with their long-term charitable goals. Additionally, the income is often taxed more favorably than other income sources, further enhancing the financial benefits.
For those seeking a combination of charitable giving and financial planning, a CRT offers a compelling solution.
Want to learn more? Call us anytime at (844)782-9674.
