Charitable Remainder Trusts
You've Built Wealth. Now Make It Work Harder—For You and the Causes You Love.
A Charitable Remainder Trust can help you defer capital gains tax, receive a charitable income tax deduction, and create a lifetime income stream—while leaving a meaningful legacy for the causes you care about.
The challenge: You’ve done well—maybe you own stock that’s grown 10x, real estate that’s appreciated for decades, or a business you’re ready to exit. But selling means a massive tax bill. And you’re torn between securing your retirement, taking care of family, and supporting causes that matter to you.
Quick Self-Assessment
Check the statements that apply to you:
- I own assets that have appreciated significantly and am considering selling.
- I'm concerned about the capital gains tax I'll owe on a sale.
- I want reliable income in retirement but also care about leaving a legacy.
- I have charitable goals but don't want to give everything away today.
- I'd like to provide for my spouse or children while also supporting charity.
If you checked 2 or more, a CRT may be worth exploring. Keep reading to learn more.
The Problem: Success Created a Tax Trap
You worked hard to build wealth. But now you’re facing difficult trade-offs that feel like choosing between bad options.
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"If I Sell, I Lose a Fortune to Taxes"
That stock you bought for $50,000 is now worth $500,000. Selling means writing a check to the IRS for $90,000+ in federal capital gains alone—plus state taxes. It feels like being penalized for making good decisions.
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"I Want to Give, But I Also Need Income"
You care deeply about your church, alma mater, or favorite charity. But you’re not ready to write a huge check today when you still need that money for retirement, healthcare, or helping your kids.
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"My Wealth Is Stuck in One Asset"
Whether it’s a rental property, family business, or concentrated stock position, your net worth is tied up in something illiquid. You’d love to diversify, but the tax cost of selling feels prohibitive.
There's a Better Way: The Charitable Remainder Trust
A CRT can let you turn appreciated assets into income, defer capital gains taxes, and create a charitable legacy—all in one integrated plan, if it is structured properly and fits your overall situation.
We've Helped Clients Just Like You
We’ve guided business owners, executives, real estate investors, and retirees through the CRT planning process. We don’t sell products—we help you understand your options and make confident decisions.
A well-designed CRT isn’t a magic bullet, but for the right situation, it can be transformative. Our job is to help you figure out if you’re in that situation—and if so, to design a plan that actually works.
- We model multiple scenarios so you can compare outcomes
- We coordinate with your CPA, investment advisor, and attorney
- We explain the trade-offs honestly—including when a CRT isn't the best choice
- We handle the technical drafting and ongoing compliance
How a CRT Works (In Plain English)
1
You transfer appreciated assets to the trust.
In a properly structured CRT, this transfer is not treated as a taxable sale; the trust now owns the assets, and capital gains are generally deferred until income is paid out to you.
2
The trust sells and reinvests—tax-free at the trust level.
The trust can sell and reinvest without paying capital gains tax at the trust level. You don’t owe capital gains tax at the time of sale, but you will owe tax on income the trust later distributes to you.
3
You receive income for life (or a term of years)
Predictable payments, like a pension you create for yourself.
4
The remainder goes to charity when the trust ends
Your legacy supports causes you care about—guaranteed.
Leave a Legacy That Reflects Your Values
A CRT isn’t just a tax strategy—it’s a way to make a meaningful, lasting impact on the causes and organizations that matter most to you.
Fund ministries, building projects, or endowments that sustain your congregation for generations.
Education & Scholarships
Create scholarships at your alma mater or support schools that shaped your children’s lives.
Advance research for diseases that affected your family or support your local hospital.
Strengthen food banks, housing programs, environmental organizations, or arts institutions in your community.
How a CRT Amplifies Your Giving
2-3x
Larger gifts than you could make outright, because you’re giving pre-tax dollars and deferring capital gains.
100%
∞
Lasting impact—name multiple charities, change beneficiaries over time, or create a permanent endowment
You can name specific charities directly, use a donor-advised fund for flexibility, or even name a private foundation. You can also change charitable beneficiaries during your lifetime if your priorities evolve.
This Might Be Right for You. Or It Might Not.
CRTs are powerful tools, but they’re not for everyone. Here’s how to know if you’re a good candidate.
- A CRT May Be a Great Fit If...
- You own assets that have appreciated significantly (stocks, real estate, business interests) and are considering selling
- You're charitably inclined and want to leave a legacy, but also need income for yourself or your spouse
- You're in a high tax bracket now and want to reduce current income taxes
- You have time—ideally 10+ years until you need the charitable deduction to "pay off"
- You're comfortable with an irrevocable decision (you can't take the assets back)
- You don't need the principal—you're okay living on the income stream
- You have other assets to leave to heirs, or you're planning to use life insurance to "replace" wealth for family
- A CRT Probably Isn't Right If...
- You might need access to the principal in the future
- You're not charitably inclined—you'd rather leave everything to family
- The assets haven't appreciated much (little capital gain to defer)
- You're in a low tax bracket and won't benefit much from the deduction
- You need maximum flexibility—CRTs have strict rules that can't be changed later
- You're under 50 and not yet sure about long-term plans
- The assets have debt attached (mortgaged property generally can't go into a CRT)
What's Actually at Stake? A Real-World Comparison
Consider Sarah, age 65, who owns $1 million in stock she bought for $100,000. She wants retirement income and cares about her university.
| Sell Outright | Charitable Remainder Trust | |
|---|---|---|
| Capital Gains Tax (Federal + State) | ~$215,000 due immediately | $0 due at sale (capital gains deferred to future distributions) |
| Amount Available to Invest | $785,000 | $1,000,000 (full amount) |
| Annual Income (5% payout) | ~$39,250/year | ~$50,000/year |
| Charitable Deduction (Year 1) | $0 | ~$350,000–$450,000* |
| Tax Savings from Deduction | $0 | ~$120,000–$160,000* |
| To Heirs at Death | Remaining portfolio | $0 (goes to charity) |
| To Charity at Death | $0 (unless separately planned) | Remainder (often $500K+) |
*Deduction ranges depend on age, payout rate, and IRS interest rates at the time of funding. This is a simplified hypothetical illustration—not a guarantee of results. Your actual numbers will differ, and we model them specifically for your situation.
This material is for informational purposes only and does not constitute legal, tax, or investment advice. Please consult your own attorney, CPA, and financial advisor before implementing a charitable remainder trust.
Which Type of CRT Is Right for Your Situation?
There are several CRT structures, each designed for different needs. Here’s a plain-English guide.
Charitable Remainder Annuity Trust (CRAT)
Best for: Predictability seekers
Pays a fixed dollar amount every year, regardless of how the investments perform. Like a pension—you know exactly what you’ll receive.
- Great if you want certainty and don’t need inflation protection
- No additional contributions allowed after setup
- Often works best for clients in their mid-60s or older, because IRS tests are easier to meet at older ages.
Standard Unitrust (CRUT)
Pays a fixed percentage of the trust’s value each year—so if investments grow, your income grows too.
- Built-in inflation hedge
- You can add more assets over time
- Income fluctuates with market performance
Net Income CRUTs (NICRUT/NIMCRUT)
Best for: “Retirement bridge” planning
Pays the lesser of the stated percentage or actual trust income. Great for deferring income until you actually need it. These are specialized structures requiring careful drafting and IRS-rule compliance.
- Build value during working years, then “turn on” income at retirement.
- NIMCRUT version lets you make up missed payments later.
- Ideal when funding with assets that produce little current income.
Flip Unitrust
Starts as a net income trust, then “flips” to a standard unitrust when a triggering event occurs (like selling the property inside). Requires careful drafting to comply with IRS regulations.
- Perfect for raw land, rental property, or business interests.
- Minimal income while asset is unsold, then full payout after.
- Trigger must be outside your control (cannot be discretionary).
Common Questions We Hear
Can I change my mind after setting up a CRT?
No—CRTs are irrevocable. Once you transfer assets, you cannot take them back. This is why careful planning upfront is essential. You can, however, change the charitable beneficiaries in most cases.
What happens if I need more money than the CRT provides?
You cannot access the principal. The CRT only pays the stated amount. This is why we ensure you have other liquid assets and don’t put too much into the CRT. We run projections to help ensure the payout rate is sustainable and appropriate for your needs.
Can my spouse continue to receive income after I die?
Yes—CRTs can be structured to pay income to both spouses for both lifetimes. This is a common and recommended approach for married couples.
Can my children receive income from the CRT too?
Yes—you can structure a CRT to pay you, then your spouse, then your children. However, adding younger beneficiaries makes it harder to pass the IRS’s “10% remainder test” (which requires at least 10% to go to charity). A term-of-years payout to children (up to 20 years) often qualifies more easily than lifetime payments under IRS tests. We model these scenarios carefully.
What about my kids? Doesn't this disinherit them?
The CRT remainder goes to charity, not heirs. Many clients use life insurance (often in an irrevocable trust) to “replace” the wealth that goes to charity, so family still inherits.
How much does it cost to set up and maintain a CRT?
Legal fees for drafting often range from $6,000–$10,000 depending on complexity. Ongoing costs include trustee fees and annual tax filings. These are estimates, not quotes—we discuss all costs upfront during our consultation.
Who manages the investments inside the CRT?
You can serve as trustee (with limitations), name a family member, use a professional trustee, or use a charity’s pooled income fund. We help you choose the right structure.
Let's Find Out If a CRT Belongs in Your Plan
A 30-minute conversation can save you hundreds of thousands in taxes—or save you from a costly mistake. We’ll give you an honest assessment, not a sales pitch.
- Share some basics about your situation below
- We'll schedule a 30-minute discovery call
- You'll leave with clarity on whether a CRT makes sense—and what to do next
No obligation. No pressure. Just straight answers from people who do this every day.
Request Your Free CRT Assessment
Tell us a bit about your situation, and we’ll reach out to schedule a call.