Charitable Remainder Trust

What Does Charitable Remainder Trust Mean?

A charitable remainder trust (CRT) is a trust in which beneficiaries receive income for a specified period. Once that time expires, the remaining assets of the trust are donated to charity.

Similar to life insurance, CRTs are used to reduce tax burdens.

Insuranceopedia Explains Charitable Remainder Trust

One positive feature of charitable remainder trusts is that they enable charities to receive assets that they might not otherwise have access to. Since beneficiaries also benefit from the trust for a designated period, a CRT proves advantageous for all parties involved.