What is it?
A trust that pays income for life or a term of years to the donor and/or others. At the end, assets remaining in the trust are transferred to the charity you designated.
What’s in it for me?
A CRT can help you diversity assets, avoid or defer capital gains tax, secure often-greater income, and possibly provide inflation protection.
How do I set it up?
- Sit down with your professional advisor(s) to create a trust that pays income to yourself and/or your designees
- Sit down with the Community Foundation of Grundy County to select the type of fund you want the remainder of the trust to create and the issues you want it to solve.
CRT highlights:
- Removes taxable assets from estate
- Tax deduction for gift portion of the asset
- Partial avoidance of capital gains tax
- Variable or fixed income for life (or term)
- Significant income and estate tax advantages
- Ultimate beneficiary is your favorite charity or cause
What type of fund can I set up at the Community Foundation of Grundy County?
- donor advised fund – establish now; recommend grants later
- designated fund – annual distribution to your favorite charity
- field of interest fund – join with others to make grants in community areas such as education, fine arts, historic preservation, animal welfare, and others
- scholarship fund – change the future of a young scholar
- agency endowment – join others to make sure your favorite charity or school has a permanent source of annual income