Charitable Remainder Trust
What Does Charitable Remainder Trust Mean?
A charitable remainder trust (CRT) is a trust in which the beneficiaries receive income from it for a specific period of time. However, once that time runs out, the remaining assets of the trust are given to charity.
Like life in insurance, CRT's are used to reduce tax burdens.
Insuranceopedia Explains Charitable Remainder Trust
One positive feature of charitable remainder trusts is that they allow charities to get assets that they may otherwise never have access to. Since the beneficiaries also benefit from the trust for a period of time, a CRT is advantageous to all parties involved.