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

A charitable remainder trust (CRT) is a type of estate planning law tool used to provide funds to a charity or other non-profit organization as well as to the grantor. This tool is commonly used by individuals in Florida who are interested in leaving money or assets to a charity or other non-profit organization without giving away all of their funds and assets at once. The way it works is that the grantor creates a trust with a trustee and then transfers assets from their own estate into the trust. The grantor can specify the amount that they want to go to the charity or other non-profit organization, as well as the time frame in which the funds should be dispersed. The trustee is responsible for managing the trust and may invest the money to ensure that the funds are available in the future. The grantor can also receive income from the trust while they are alive and can designate future beneficiaries in the trust. In addition, the grantor can usually claim a charitable deduction on their taxes from the value of the assets that are transferred into the trust. Upon the passing of the grantor, the trustee will then disperse the remaining funds from the trust as specified in the trust document. Depending of the type of CRT that is set up, the funds can be distributed to the charity or non-profit organization, or to designated beneficiaries.

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

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