Charitable Remainder Trusts

A charitable remainder trust is a tax exempt trust that can liquidate an asset to create two interests: income interest and remainder interest.  The income interest is paid out to a designated beneficiary (such as the creator of the trust) for a lifetime or at the conclusion of the term, and the remainder interest is passed to a qualified organization of the donor’s choice as specified in the trust document.  Qualified organizations include charities, family foundations, and donor advised funds.

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