How to Benefit From a Charitable Remainder Annuity Trust (CRAT) – Part 1

Looking for an opportunity to save income, gift or estate taxes through a charitable contribution, while retaining, for a time, an income interest? These considerable tax savings are available through the use of a charitable remainder annuity trust (CRAT). Over the next few blog posts, we will discuss CRATs, their rules, and how you can benefit from one.

Establishing a CRAT is a technique by which a taxpayer contributes property to a trust, and the trust pays specified amounts to noncharitable beneficiaries for a number of years. After this period, the remainder of the property is paid to, or for the use of a charitable organization, or retained in the trust for charitable uses.

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