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What are the benefits of a Charitable Remainder Trust?

Using one of the two types of charitable remainder trusts can provide you with a tax donation and designated noncharitable beneficiaries with an income stream, and then pass the remainder to a designated charitable beneficiary without its needing to go through probate. Those are notable benefits.

How do charitable remainder trusts impact your taxes?

Should You Create This Type of Trust? Charitable remainder trusts are an estate planning tool that can be used to claim tax breaks and set yourself up to receive income—all while giving money to nonprofit organizations.

What are the benefits of a charitable remainder (CRT)?

One of the most significant benefits of CRTs is the tax savings they offer. Donors can receive an immediate income tax deduction for the present value of the charitable remainder interest that will eventually go to the charity. CRTs can also potentially reduce estate tax liability by removing assets from the donor's taxable estate.

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