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

A charitable remainder trust (CRT) is a type of estate planning tool used to donate assets to charity while minimizing taxes owed on the estate. In Oklahoma, a CRT is an irrevocable trust that allows estate owners to transfer assets to a designated charity while still retaining some income rights to the assets. This means that the estate owner can still receive a portion of the income generated from the asset for a designated period of time, and the remaining income is paid to the charity. After the estate owner’s death, the designated charity gains full ownership of the assets remaining in the trust. CRTs are advantageous because they offer a number of tax benefits. For example, estate owners may be able to receive an income tax deduction for any cash or other assets they transfer to a CRT. Furthermore, any income generated from the assets remaining in the trust is not subject to income or estate taxes. Additionally, because the estate owner retains some income rights, they can still receive income from the assets over their lifetime or a designated period of time. For these reasons, a CRT can be a good estate planning tool for those individuals looking to reduce taxes or pass their assets on to charitable organizations. It is important to consult with a qualified estate attorney before establishing a CRT to ensure that the trust meets all of the necessary legal requirements in Oklahoma.

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

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