Test Yourself - A Great Time for CRTs


"Our friends just set up a Charitable Remainder Trust and I'm curious: Does the number of beneficiaries of the trust affect the tax benefits?"

Your Answer?   

Yes. More income beneficiaries means less of a charitable deduction because each additional beneficiary increases the estimated life expectancy of the group. A longer life expectancy will increase the number of payments which results in less of a gift so the value of the gift declines.

A Great Time for CRTs

The remaining months of 2014 may well be one of the best years ever for creating CRTs. The reinvigorated stock market, the increased number of company buy-outs and mergers and the continuing low interest rates could mean your financially creative donors may be looking for ways to do some tax-wise planning. Certainly a CRT should be considered when they are exploring their options.  

As you make your fall forays into homes and offices of your donors and donor prospects, you might consider specifically mentioning CRTs.  And, for certain, those donors you work with who already have a CRUT (Charitable Remainder Unitrust) need to be reminded they can make additional gifts to their existing trust.

Remember you don't have to be an expert; knowing the basics will take you a long way in building a stronger relationship with the donor.

Before your next travels – review CRTs in the Gift Planning Field Guide.