Charitable Remainder Trust
Learn how a charitable remainder trust works, its tax implications, and how it fits into a broader estate plan for families with charitable goals.
How does a charitable remainder trust affect my estate taxes?
A charitable remainder trust (CRT) removes assets from your taxable estate, which can reduce exposure to federal estate tax — currently applicable to estates above $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Jul 13, 2026View source for individuals. When you transfer assets into a CRT, you or your beneficiaries receive an income stream for a set period, and the remaining assets pass to your chosen charity. You may also receive a partial charitable income tax deduction in the year the trust is funded, based on the present value of the charity's remainder interest. Because CRTs involve irrevocable transfers and ongoing income calculations, understanding how they interact with your overall estate plan is an important part of the process.
