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Charitable & Philanthropic

Charitable Remainder Trust (CRUT/CRAT)

Sell appreciated asset inside CRT — no cap gains, income stream for life, remainder to charity.

Overview

Contribute appreciated stock/real estate/business to a CRUT: trust sells tax-free, invests proceeds, pays you 5–10% annual income for life (or term ≤20 yrs). Immediate charitable deduction of PV of remainder (10–40% of contribution). At death/term, remainder passes to named charity. Distributions taxed under 4-tier ordering rules (ord income → cap gains → tax-exempt → return of principal).

Best fit
Pre-liquidity foundersReal estate sellers with big cap gainsCharitably-inclined retirees needing income
Estimated impact
20–37% deferred/eliminated cap gains + immediate deduction

Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.

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