Toggle navigation
Start Here
Find a Service Provider
Browse the Library
Federal and State Programs
Carbon Sequestration
Conservation Tax Center
Land and Energy Conservation Tools
Sustainable Land Management
Tree Farms
Wetlands and Wildlife
!-->
LandCAN Sites
Arkansas LandCAN
California LandCAN
Colorado LandCAN
Georgia LandCAN
Idaho LandCAN
Louisiana LandCAN
Maine LandCAN
Mississippi LandCAN
Texas LandCAN
Virginia LandCAN
HabitatCAN
Connect
About LandCAN
Get To Know LandCAN
What We Do
Mission & Values
Our People
Our Partners
2022 Annual Report
2021 Annual Report
2020 Annual Report
2019 Annual Report
LandCAN Blog
LandCAN Success Stories
-->
Earthx Conservation Sessions
!-->
Donate
Create an Account
Sign In
Advertise with LandCAN
A video about us
Contact
Sign In
Donate
A video about us
LandCAN Library
LandCAN Library
Home
>
LandCAN Library
>
What is a Charitable Remainder Trust?
LandCAN Library
Are you considering the value of carbon in your soil?
For more information, visit:
What is a Charitable Remainder Trust?
By:
Breana Behrens
A charitable remainder trust (CRT) is a good tool to minimize gift and estate taxes on highly appreciable assets.
A charitable remainder trust (CRT) is a trust that distributes a fixed percentage of the value of its assets to a non-charitable beneficiary, usually the settlor of the trust, for a stated period of time, usually their lifetime (§664). The fixed distribution must be between 5% and 50% of the fair market value of the trust assets. Then, when the stated time limit is reached, the remaining balance of the value of the assets is distributed to a charity. This remaining balance must be at least 10% of the fair market value of the assets originally placed in the CRT.
If the lifetime beneficiary of the trust is the settlor, or person who placed the assets in the CRT, then the distributions will not be subject to gift taxes. However, if the beneficiary is someone other than the settlor, then the lifetime distributions may be subject to gift taxes. The assets that are placed in a CRT are not included in the settlor’s estate for estate tax purposes. The Internal Revenue Code (§2055(a)) provides a deduction from the value of the gross estate for transfers to qualified charitable organizations.
The settlor may also be eligible for a charitable deduction for the value of the remainder of the assets that are transferred to the charitable organization.
×
Accept Cookies
By using our website you are consenting to our use of cookies in accordance with our
privacy policy
.