A charitable remainder trust (CRT) allows you to support a cause while receiving financial benefits. This estate planning tool provides income, reduces taxes, and ensures charitable giving. Individuals can use CRTs to enhance their financial and philanthropic goals.
Provides income while supporting charity
A CRT allows you to receive income for a set period before the remaining assets go to a charity. You can choose a fixed amount (annuity trust) or a percentage of the trust’s value (unitrust). This structure benefits individuals who want financial security while giving to a cause they care about.
Reduces capital gains taxes
If you sell appreciated assets, you typically owe capital gains tax. Transferring assets into a CRT avoids this immediate tax. The trust can sell the assets tax-free and reinvest the proceeds, increasing potential income. Ohio law follows federal tax guidelines, making CRTs a powerful tool for tax savings.
Offers estate and income tax benefits
Since a CRT is irrevocable, assets placed in the trust are removed from your estate, potentially lowering estate taxes. You may also receive a charitable deduction based on the value of the future gift to charity.
Supports long-term charitable giving
A CRT ensures that after the income period ends, the remaining assets go to a designated charity. This allows you to create a lasting philanthropic impact while benefiting from financial incentives. You can choose any qualifying nonprofit organization.
Allows flexible asset contributions
You can fund a CRT with cash, stocks, real estate, or other assets. This flexibility makes it an effective estate planning tool for individuals with diverse investments. Ohio residents can use CRTs to manage wealth efficiently while achieving charitable and personal financial goals.
A CRT provides financial security, tax advantages, and the ability to support meaningful causes. If structured correctly, it offers a smart way to give while benefiting your estate.
