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Charitable Remainder Trusts

November 23, 2023

A Charitable Remainder Trust (CRT) is a powerful estate planning strategy that can allow individuals to donate assets to a charity of their choice while still retaining an income stream from the donated property during their lifetime. In today's video, we will explore the key benefits of the Charitable Remainder Trust.

Benefit 1: Tax Benefits

Firstly, CRT can provide significant tax benefits for both the donor and the charity. Donors can receive an immediate charitable income tax deduction for the present value of the remainder interest donated to the charity. Additionally, Charitable Remainder Trusts can be exempt from capital gains tax, making them an attractive option for individuals with appreciated assets who wish to sell without incurring significant tax burdens.

Benefit 2: Income Stream to Donors

Secondly, a Charitable Remainder Trust may allow donors to receive an income stream from the donated property during their lifetime. Whether the payments are fixed or variable, this feature can provide financial security to donors while supporting their preferred charity.

Benefit 3: Estate Planning

Thirdly, CRT is an essential tool for estate planning. By donating assets to charity through a Charitable Remainder Trust, donors can help reduce their estate's taxable value, thus lowering the estate tax liability. The donated assets are also removed from the donor's estate, enabling the transfer of more wealth to their heirs without tax liabilities.

Benefit 4: Philanthropic Goals

Lastly, a Charitable Remainder Trust allows individuals to support their philanthropic goals. By donating substantial assets to charity while still receiving an income stream, donors can make a significant impact on their communities and support causes they deeply care about.

A Charitable Remainder Trust can be an attractive estate planning tool that provides tax benefits, income stream payments, and supports philanthropic causes. By understanding the advantages of a Charitable Remainder Trust, individuals can make informed decisions about their estate planning strategies, fulfilling their financial and philanthropic goals while benefiting their favorite charities.

Securing your financial future and protecting your loved ones' interests starts with proper planning. To learn if a Charitable Remainder Trusts is right for them, please use the link below to schedule your meeting today!

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Note: Investment strategies and specific investments mentioned may not be suitable for everyone. Individual decisions should be made after careful consideration of one's financial objectives, situation, and needs. This information is not intended as a personalized recommendation. Seeking advice from a personal investment advisor is recommended.

Please note that representatives do not offer tax or legal advice. Discussions related to taxes are purely informational, not exhaustive, and should not be interpreted as legal, tax, or accounting advice. It is advisable for clients to consult with qualified legal, tax, and accounting advisors as needed.

Securities and investment advisory services are provided through registered representatives of MML Investors Services, LLC, a member of SIPC.