What is a charitable remainder trust?

A charitable remainder trust (CRT) is a type of trust used to reduce income taxes and provide assets to a charity while providing an income stream to the donor. It is a tax-exempt trust recognized by the Internal Revenue Service (IRS). In a charitable remainder trust, a donor makes a transfer of assets into a trust, and designates a charity as the beneficiary. The donor typically receives an income from the trust, either in the form of payments or distributions, for the rest of their lifetime. After the donor dies, the remaining assets in the trust are distributed to the designated charity. In Florida, charitable remainder trusts are governed by the Florida Statues Title XLV, Trusts and Estates. This statute sets forth the laws for trusts and estates in the state of Florida. Charitable remainder trusts can be a great way for individuals to reduce their income taxes, as the income from the trust assets is often tax-exempt. They can also be a great way for individuals to benefit a charitable organization that they would like to support.

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What is a charitable remainder trust?

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