Charitable Remainder Trusts (CRT)

A CRT is a special tax-exempt irrevocable trust arrangement where you transfer cash or assets (especially appreciated assets like land, stock or property) to a trust and in exchange you may receive income for life or for a certain term of years.

The income from a CRT can be paid over your life, your spouse’s life, and even your children’s and grandchildren’s lives. A CRT must be written to comply with federal tax laws and regulations.

Charitable Remainder Trust FAQ

When is a CRT a good choice for charitable giving?

Most CRTs are created with the intention of providing an income stream to the donors for their lifetimes with the “remainder” of the wealth passing to charity at the conclusion of the trust term.

What about taxation?

Because CRTs help donors avoid excessive taxation, they are able to give much more to the causes they care about and leave a lasting legacy for the betterment of all. To learn more about a charitable remainder trust, contact Joe Finneran, at (614) 800-7985 or .

Donor Story — CRT

CRT Tom and Betsy Binzer met while attending a prestigious Catholic university and married shortly after graduation. Now 55 years of age, they are planning to sell the business that has consumed most of their adult lives and travel the world in leisure.

The business is valued at over $25,000,000, but because they started it from scratch with a $1,000 loan from Betsy’s father, they have no cost basis in the company stock. Their tax advisors warn them that they will owe as much as 15% of the company’s value in capital gains taxes when they sell!

Ardent supporters of Catholic education, the Binzers would rather see that money support the operational costs of the university they care so much about. So prior to the sale of business, the Binzers agreed to donate 20% of the company stock valued at $5,000,000 to a charitable remainder unitrust that would pay out a reasonable percentage annually to themselves as retirement income, while at the same time allowing the trust to grow in value for the University. In fact, by the time the University receives the benefit, the trust is projected to be over $8 million.

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