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How can a charitable remainder trust (CRT) be beneficial for charitable giving?

A charitable remainder trust (CRT) is a suitable vehicle if you want to give property to a charity while retaining some control over it. Funded by an appreciating asset such as real estate or stock in a family-owned business, a CRT provides income to beneficiaries for a defined period. Afterward, the remainder of the trust is donated to the charity. By using a CRT, you can avoid capital gains taxes on donated assets, receive a tax deduction on earned interest by the remainder, and potentially reduce your estate tax liability by removing the asset’s remaining value from your estate. 

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