What is a charitable remainder trust and how does it work?

A Charitable Remainder Trust (CRT) is a type of estate planning law available in Arizona which allows individuals to give away assets to a charity while still keeping the majority of the tax benefit for themselves. This type of trust typically involves transferring a portion of the assets to a trust, which will then be managed by the charity. The trust is designed so that the beneficiary (usually the donor) will receive a set amount of money each year, for a specified number of years, and after the specified number of years, the remainder of the assets in the trust are distributed to the designated charity. The benefit of a Charitable Remainder Trust is that the donor gets to receive the income for a number of years and it can also provide them with tax savings. Additionally, the donor also receives the income for the number of years and the charity gets the remaining amount in the end. The donor can also claim a charitable deduction when filing taxes. In conclusion, a Charitable Remainder Trust is a type of estate planning law available in Arizona which allows individuals to give away assets to a charity while still keeping the majority of the tax benefit for themselves. The donor gets to receive the income from the trust for a number of years, and after the specified number of years, the remainder of the assets are distributed to the designated charity. Additionally, the donor can also claim a charitable deduction.

Related FAQs

How can I plan for the future of my minor children after I die?
How should I select executors for my estate?
What is an estate distribution plan and how does it work?
What happens if I don't have an estate plan?
What should I do if I want to disinherit a beneficiary?
What is a trust account and how does it work?
What is the difference between an executor and a trustee?
What happens to my estate if I die intestate?
What is a marital deduction and how does it work?
Should I name my estate as the beneficiary of my life insurance policy?

What is a charitable remainder trust and how does it work?

Related FAQs

Related Blog Posts