Charitable Remainder Trusts

Use cash or appreciated securities to establish a Charitable Remainder Trust (“CRT”). You can choose between:

• Charitable Remainder Unitrust (“CRUT”) receive a fixed percentage of the fair market value of the trust's assets, valued annually. Since the value of the CRT will vary annually, your income payments will fluctuate from year-to-year.
• Charitable Remainder Annuity Trust (“CRAT”): receive a fixed annuity amount each year.

How it works

Working with an attorney, establish the CRT

• Select a charitable beneficiary (AJC).
• Select one or more non-charitable beneficiaries (yourself, spouse, relative, friend).
• Transfer assets into the trust (cash, securities, real estate).

Income to Beneficiaries

• Investments held within the CRT are allowed to grow tax free, while paying the beneficiary an annual income for life or a term of years.

Advantages

• Federal income-tax deduction when the CRT is established.
• Use appreciated securities to fund the CRT and avoid paying capital gains tax on those assets.
• Assets held in a CRT are not included in the value of your estate. This can help reduce estate taxes upon your passing.
• After the lifetime of the CRT beneficiary any remaining assets are transferred to AJC and help create your charitable legacy.