What is a charitable remainder trust?
A charitable remainder trust (CRT) is a type of trust established in West Virginia that allows an individual to transfer assets into the trust and receive a charitable deduction on their income taxes in the year the contribution is made. The trust then pays the individual a set amount of money each year, typically for life. The principal of the trust then passes to the designated charitable beneficiary upon the death of the individual. CRTs offer several advantages to West Virginia residents looking to put their assets to work for both themselves and a charitable cause. First, the individual receives a charitable deduction when they transfer their assets into the trust. CRTs can also provide individuals with an income stream for life, and also provide a mechanism for passing on a portion of their wealth to a charitable beneficiary. Finally, CRTs can offer some tax benefits, since the assets contained in the trust are not taxed until they are distributed to the beneficiary. This means that CRTs can provide a way to defer or reduce the amount of taxes owed on the transfer of assets. In short, a charitable remainder trust in West Virginia is a type of trust that allows an individual to receive a charitable deduction when they transfer assets into the trust and receive a set amount of income for life. Upon the death of the individual, the principal of the trust then passes to the designated charitable beneficiary. CRTs can offer tax benefits as well as the satisfaction of supporting a good cause.
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