Charitable Remainder Trusts
21. Beneficiary Analysis: With CRT
On the other hand, if they transfer the property to a charitable remainder trust, as shown on the right, they won't have to pay any capital gains or estate taxes, but there also isn't anything left for their children. Remember, when the Brodys die, whatever is left in the trust will go to charity.
If you have a sizeable estate, the property you place in a charitable remainder trust may be a small percentage of your assets, so your children may be well taken care of.
But if you are concerned about replacing the value of this property for your children, there is a very easy way to do so.