| Charitable Remainder Unitrust |
A charitable remainder unitrust (also known as a CRUT) is an irrevocable trust established to take care of the grantor for life and sometimes the grantor's spouse for life. The grantor receives an income of not less than five percent of the assets in the trust, and when the grantor (and possibly the grantor's spouse) dies, the remainder goes to the designated charity. This trust can provide great tax benefits. For example, if the assets have appreciated greatly, the grantor would incur a capital gains tax if he/she sold them. By setting up a CRUT, the grantor receives the same income he or she has been receiving for life, avoids capital gains tax, receives an immediate tax deduction worth the present market value of the assets transferred (which can be carried forward 5 years on income tax returns), and at death the assets are NOT included in the grantor's estate, thereby avoiding federal estate tax (37% to 55%). |
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| Estate Planning & Asset Protection |
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