Charitable Remainder Trusts

A Charitable Remainder Trust (CTR) let you convert a highly appreciated asset like stock or real estate into lifetime income. It reduces your income taxes now and estate taxes at your death. You pay no capital gains tax when the asset is sold, and it lets you help one or more charities that have special meaning to you.

How does a Charitable Remainder Trusts (CRT) work?

crt diagram

When and appreciated asset is transferred into an irrevocable trust, the asset is removed from your estate and no estate taxes will be due upon death. You also received an immediate charitable income tax deduction. The trustee then sells the assets at full market value, paying no capital gains tax, and reinvest the proceeds in income producing assets. For the rest of your life, the trust pays you and income. Upon death, the remaining trust assets go to the charity or charities you have chosen. That’s why it’s called a charitable remaining trust.

Charitable giving maybe complicated. You may wish to contact legal or tax advisers.

Contact:  cheryl clark

Cheryl A. Clark, CFP

Office: 712-325-5920

Cell: 712-890-7155

cclark@childrenssquare.org

 

6-15-2020