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

A charitable remainder trust (CRT) is a type of estate planning law used in Washington and many other states. It is a trust that allows for the transfer of assets, such as cash or real estate, from the grantor (the person creating the trust) to a charitable organization. The trust is then managed by a trustee, typically an attorney or financial professional. A CRT works by allowing the grantor to donate a portion of their wealth to a charitable organization while still receiving a benefit from the donation. The grantor can receive a fixed or variable income stream from the trust for a predetermined time period (often for the rest of their life). When the trust expires, the remaining assets are transferred to the designated charity. CRTs are a great way for people to donate to charities while still receiving the financial benefits of their wealth. They can provide tax benefits for the grantor, provide income to their family members, and can help ensure the charity receives the donation of assets. In Washington, they may also provide a way for taxpayers to reduce the amount of estate tax they owe. CRTs are not for everyone, however, as they come with certain requirements and restrictions. It’s important to discuss your options with an estate planning attorney in Washington to determine if a charitable remainder trust is the best solution for you.

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

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