Charitable Remainder Trusts
29. Benefits Of CRT
As you have seen, using a charitable remainder trust lets you convert an appreciated asset into a lifetime income.
You are able to reduce your current income taxes because you receive a charitable income tax deduction in the year you transfer the asset to the trust.
You reduce estate taxes that may be due when you die because transferring the asset to the charitable remainder trust removes it from your taxable estate.
You pay no capital gains tax when the asset is sold because the trust -- not you -- sells the asset.
You receive more income over your lifetime than if you had sold the asset yourself and invested the proceeds.
By using a life insurance trust to replace the full value of the asset, your children receive much more than if you had sold the asset yourself and had paid capital gains and estate taxes.
And, finally, you are able to make a sizeable gift to one or more charities that have special meaning to you.