About Charitable Remainder Trusts
A Charitable Remainder Trust (CRT) is a planned giving tool that allows donors to make a significant charitable impact while also providing financial benefits to themselves or their beneficiaries.
This type of trust is an irrevocable arrangement in which a donor transfers assets into a trust that is managed and invested by a trustee. The trust pays income to designated beneficiaries for a set number of years or for their lifetime, after which the remaining assets are distributed to charity.
Types of Charitable Remainder Trusts
Charitable Remainder Annuity Trust (CRAT):
Fixed income stream based on a percentage of the initial asset value
Income stream does not change over time
Charitable Remainder Unitrust (CRUT):
Variable income stream based on a percentage of the trust’s value, revalued annually
If assets appreciate over time, the income stream will also increase
Benefits
- Reduce or eliminate capital gains taxes
- Retain an income stream for yourself or beneficiaries
- Create a lasting legacy that supports our mission
How it works
- Transfer assets (such as cash, securities, or real estate) into a trust, which is managed by a trustee.
- The trust pays income to designated beneficiaries (such as you, your spouse, or other individuals) for a set number of years or for their lifetime.
- At the end of the trust term, the remaining assets are distributed to one or more charitable organizations.
- Receive an income tax deduction for the present value of the charitable remainder interest in the trust.
- You may also be able to avoid or reduce capital gains taxes on appreciated assets that are transferred into the trust.
Discover Whether a Charitable Remainder Trust Is Right for You
Receive a personalized illustration to see how a charitable remainder trust may help you generate income, manage capital gains taxes, and create a lasting legacy at Rutgers.
Contact Us
Our team is available to discuss your philanthropic goals and explore giving options that align with your values, family, and financial priorities.
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More ways to make an impact
Gifts in a will or trust
These are the most common type of planned gift. Learn more or get started with a free online will or trust tool.
Beneficiary designations
Retirement assets like IRAs and 401(k)s can be among the most tax-efficient assets to leave to charity, helping maximize your impact while preserving other assets for loved ones.
Popular tax-smart gifts
Many donors choose to give non-cash assets because they may provide tax advantages while maximizing charitable impact.