Charitable remainder trusts (“CRT”) are a widely used and accepted charitable and estate planning tool. CRT’S allow donors to accomplish their charitable objectives and obtain immediate income tax advantages and estate tax relief.
Just as importantly, CRT’S are legally sound and IRS approved. The last several years have put tax lawyers and accountants on their heels – not to mention subject to criminal and civil penalties - as the IRS and the United States Senate Finance Committee have successfully targeted various abusive tax strategies. “Circular 230,” “Listed Transactions,” and “Tax Shelters” have become as integral to tax planning as the annual exclusion and valuation discounting. In contrast, CRT’S are statutorily approved as a fundamental planning strategy. With only minor Congressional tweaks since the statutory provisions were passed in 1969, donors and professionals can be assured that, if they meet the expressly prescribed rules, the charitable, income and estate tax advantages are guaranteed.