Explain a Charitable Remainder Trust (CRT) and the benefits it provides to donors.

Explain a Charitable Remainder Trust (CRT) and the benefits it provides to donors.

• A. A CRT provides an income stream to the donor (or beneficiaries) for a period, with the remainder going to charity; provides potential income tax deductions, capital gains avoidance on appreciated assets, and reduced estate taxes.
• B. A CRT eliminates all income taxes for the donor and the estate.
• C. A CRT requires immediate charitable transfer with no income to the donor.
• D. A CRT is a trust that forces all assets to be sold at death.

Answer: (A)