Charitable Remainder Trusts (CRTs) are powerful tools for balancing financial planning with philanthropic goals. They offer several key benefits, particularly for retirees and those planning their estates. By establishing a CRT, donors can enjoy an immediate income tax deduction based on the present value of the assets eventually passing to the charity. This deduction can substantially reduce the donor's taxable income for that year. Additionally, CRTs are exempt from capital gains tax when they sell appreciated assets, allowing the full reinvestment of proceeds to potentially increase the income stream to the donor or other beneficiaries (Due) (The Chicago Community Trust).
Estate Planning
A will is a legal document that transfers what you own to your beneficiaries upon your death. It also names an executor to carry out the terms of your will and a guardian for your minor children, if you have any.
Your signature and those of two witnesses make your will authentic. Witnesses don't have to know what the will says, but they must watch you sign it and you must watch them witness it.
