Philanthropy Meets Tax Strategy

Charitable Remainder Trust (CRT)

Sell appreciated assets without capital gains tax, receive a steady income stream for your family, claim an immediate charitable deduction, and leave a lasting legacy for the causes you care about.

0%
Capital Gains on Transfer
Up to 60%
AGI Deduction
5-20yr
Income Term
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Understanding the Basics

What Is a CRT?

A Charitable Remainder Trust (CRT) is an irrevocable trust that provides an income stream to you (or other named beneficiaries) for a specified period, after which the remaining assets pass to one or more charities. It offers a unique triple tax benefit: an immediate income tax deduction, avoidance of capital gains on contributed appreciated assets, and removal of assets from your taxable estate.

There are two main types. A Charitable Remainder Annuity Trust (CRAT) pays a fixed dollar amount each year. A Charitable Remainder Unitrust (CRUT) pays a fixed percentage of the trust's value, recalculated annually, allowing payments to increase as the trust grows. The income must be at least 5% and no more than 50% of the initial trust value.

Because the CRT is a tax-exempt entity, it can sell contributed appreciated assets without paying capital gains tax, reinvest the full proceeds, and generate a larger income stream than if you had sold the assets personally and reinvested the after-tax proceeds.

Is It Right for You?

Who Is a CRT For?

Owners of Highly Appreciated Assets

If you hold stocks, real estate, or business interests with large unrealized capital gains, a CRT lets you sell them without paying capital gains tax, preserving the full value for income generation and charitable giving.

Retirees Seeking Income

A CRT can convert low-yielding appreciated assets into a steady income stream for retirement while providing a meaningful tax deduction in the year the trust is funded.

Philanthropic Families

If charitable giving is part of your values, a CRT lets you support causes you care about while receiving income and tax benefits during your lifetime. Name any 501(c)(3) organization as the remainder beneficiary.

Business Owners Exiting

Entrepreneurs selling a business can contribute pre-sale equity to a CRT, avoid capital gains on the sale, and receive income from the trust for years while the charity receives the remainder.

What You Get

Key Features

Immediate Tax Deduction

Receive a charitable income tax deduction in the year you fund the trust, based on the present value of the remainder interest going to charity.

Capital Gains Avoidance

The CRT sells appreciated assets tax-free, allowing the full proceeds to be reinvested and generate income for you.

Lifetime Income Stream

Choose between fixed annuity payments (CRAT) or variable unitrust payments (CRUT) for life or a term of up to 20 years.

Charitable Legacy

The remaining trust assets pass to your chosen charities, creating a lasting legacy that reflects your values and priorities.

The Process

How It Works

1

Design Your CRT

Our AI models different payout rates, term lengths, and trust types (CRAT vs. CRUT) to optimize your income, tax deduction, and charitable impact.

2

Fund the Trust

Transfer appreciated assets into the CRT. You receive an immediate charitable income tax deduction for the present value of the charitable remainder.

3

Receive Income

The CRT sells assets tax-free, reinvests the proceeds, and distributes income to you according to the payout schedule you selected.

4

Charity Receives Remainder

When the trust terminates, the remaining assets pass to your designated charities, completing your philanthropic legacy.

Income. Deductions. Legacy.

The Smartest Way to Give and Receive

A CRT lets you convert appreciated assets into income while making a charitable impact. Our AI models the exact tax benefit for your situation.

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Common Questions

Frequently Asked Questions

A Charitable Remainder Annuity Trust (CRAT) pays a fixed dollar amount each year, regardless of the trust's investment performance. A Charitable Remainder Unitrust (CRUT) pays a fixed percentage of the trust's annually revalued assets, so payments increase when investments perform well and decrease when they do not. A CRUT also allows additional contributions; a CRAT does not.
The deduction equals the present value of the remainder interest that will eventually pass to charity. It depends on the payout rate, term length, the IRS Section 7520 rate, and your age. The charitable remainder must be at least 10% of the initial contribution. Our AI calculates the exact deduction for your specific scenario.
Yes, most CRTs retain the flexibility to change the charitable remainder beneficiary at any time, as long as the replacement is a qualified 501(c)(3) organization. This allows you to adapt your philanthropic priorities over time without modifying the trust itself.
Highly appreciated assets provide the greatest benefit because the CRT avoids capital gains tax on the sale. Common assets include publicly traded stock, real estate, closely held business interests, and concentrated stock positions. Cash contributions work but do not provide the capital gains advantage.
Yes, this is a common strategy called a "wealth replacement" CRT. You use a portion of the CRT income to purchase a life insurance policy in an Irrevocable Life Insurance Trust (ILIT). The ILIT provides a tax-free death benefit to your heirs equal to or greater than the assets going to charity, so your family does not give up any inheritance. DynastyOS can set up both the CRT and the ILIT together.

Give More. Keep More. Leave a Legacy.

A CRT transforms appreciated assets into income, tax savings, and charitable impact. Let our team design the optimal structure for your family.

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