Charitable Trusts: What You Should Know

Charitable trusts come in two flavors, each offering different benefits.

Before you opt for a charitable trust, it’s important to understand the two main types.

Charitable Remainder Trust

A Charitable Remainder Trust is an irrevocable trust that disperses income to the noncharitable beneficiaries (annual annuity must be at least 5 percent but no more than 50 percent of the trust’s assets) with the remainder of the donated assets going to a specified charity at the time of your death. CRTs generally yield more substantial income tax deductions than do charitable lead trusts.

Charitable Lead Trusts

Often referred to as a charitable remainder trust in reverse, a Charitable Lead Trust disperses income to a named charity, while the noncharitable beneficiaries receive the remainder of the donated assets upon your death. CLTs generally benefit more from gift and estate tax benefits than do CRTs.

A financial advisor can help you determine which of these two charitable trusts accommodate your personal and financial goals.


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This information is general in nature and is not intended to be legal, tax, or financial advice. Although Regions believes this information to be accurate, it cannot ensure that it will remain up to date. Statements or opinions of individuals referenced herein are their own—not Regions'. Consult an appropriate professional concerning your specific situation and for current tax rules. Regions, the Regions logo, and the LifeGreen bike are registered trademarks of Regions Bank. The LifeGreen color is a trademark of Regions Bank.