Every taxpayer’s financial situation is unique, and some donors may be looking for a more sophisticated approach to charitable giving. A charitable remainder trust (“CRT”) can be an effective tool for accomplishing your philanthropic goals while also creating a source of income for yourself and your family. CRTs may qualify for a partial charitable deduction, provide a predictable income stream, allow the deferral of income taxes on the sale of the assets transferred to the trust, minimize exposure to estate taxes, and enable the taxpayer to plan for significant grants to a charity of choice. Unlike certain other approaches, CRTs become more attractive as interest rates soar because higher rates can reduce the actuarial value of the taxable gift. CRTs are extremely effective in the current environment and are a great tool to provide income through the retirement years while offsetting taxes and ultimately benefiting a charity.
For more: SEE: https://www.eisneramper.com/charitable-remainder-trusts-0123/