Rising rates spark interest in charitable remainder trusts
Abstract: For those who wish to leave a charitable legacy while generating income during their lifetime, a charitable remainder trust (CRT) may be a viable solution. In addition to an income stream, CRTs offer an up-front charitable income tax deduction, as well as a vehicle for disposing of appreciated assets without immediate taxation on the gain. This article details how CRTs work and explains why they’re particularly effective in today’s high interest rate environment. A sidebar looks at a common tax scam associated with CRTs.