Tax Incentives Abound for Charitable Remainder Annuity Trusts

A Charitable Remainder Annuity Trust (CRAT) is a type of charitable tax planning strategy in which a donor contributes assets to a charitable trust which subsequently pays a fixed income to a designated beneficiary, in the form of an annuity. A CRAT lasts until the donor passes away, at which time any funds remaining in the trust are then donated to a charity pre-chosen by the donor.
This strategy is appropriate for individuals who are 1) charitably inclined, 2) in or near retirement, 3) have an income need, 4) and have after tax non-IRA assets with low basis.

In the following 2-minute video, AAFCPAs Partner & Tax Attorney Josh England, JD, LLM provides a case example to demonstrate the many tax benefits of a CRAT, including reduction of capital gains tax.

CRATs are one of the many tax strategies AAFCPAs considers as part of a customized and comprehensive plan to safeguard and maximize your wealth.

If you have questions, please contact: Joshua England, JD, LLM at 774.512.4109, jengland@nullaafcpa.com; or your AAFCPAs Partner.

AAF Wealth Management is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where AAF Wealth Management and its representatives are properly licensed or exempt from licensure. This blog is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by AAF Wealth Management unless a client service agreement is in place.