Charitable Remainder Trusts
A Charitable Remainder Trust (CRT) is an arrangement in which an individual creates a special qualified charitable trust document, names a trustee, and transfers assets to that trustee to be invested and administered according to the terms of the trust. The trustee pays income to one or more beneficiaries for life or for a period of years. At the end of the trust term, all remaining assets are distributed to a charity named by the donor; at the VCF, CRTs usually pay into a VCF fund established by the donor during his/her lifetime.
The VCF offers several types of life income Charitable Remainder Trusts. Donors can choose from a fixed income for their lifetimes or for a term of years, or a variable income that changes annually with the value of the investments in their trust. Charitable Remainder Trusts at the VCF offer professional management, opportunities for diversification without loss to capital gains taxes, the prospect of tax-favored income, and a charitable deduction for the remainder value of the trust.
You might like to use our gift deduction calculator at the Foundation's Planned Giving Design Center (requires free registration) to determine the tax deductions you would receive for various types of gifts.
For more information contact:
Thomas W. Smith, CFP®
Senior Philanthropic Advisor
tsmith@vermontcf.org
802-388-3355 ext. 239