A Charitable Remainder Trust (CRT) is a planned gift whereby a donor makes an irrevocable gift to The OHF through a trust agreement. The donor transfers property to a trustee who holds and manages it. If the property is income-producing, the net income will be paid to the donor and/or other named beneficiary(ies). When the trust terminates (either at the death of the beneficiary(ies) or after a term of years, the trust remainder is distributed to The OHF.
A CRT is attractive if you have a significant asset that you wish to continue using in the present, but is not needed as part of your overall estate. CRTs may be used to bring forward tax credits for you during your life that would be otherwise lost at death with a bequest through your Will. For example, at the time the trust is established, the donor is immediately entitled to an official tax receipt for the present value of the donated residual interest.
This type of planned gift is irrevocable therefore it is imperative that you receive independent financial advice. Your financial advisor(s) will work with you to ensure this is a gift you can afford to lose control of, before you decide to make a commitment. A stand-alone Charitable Remainder Trust usually starts at $250,000.