A CRUT is an irrevocable contract that a donor or donors establish to benefit charity and provide a stream of income for themselves and others if they so choose.

  • Assets can be transferred into the CRUT and sold without creating a taxable event, which increases the assets’ income potential.
  • Donors receive a partial charitable income tax deduction for a gift of cash and sometimes for gifts of other assets.
  • Donors or their designees receive a percentage of the trust’s value as valued at the end of each year.
  • Donors can choose to have the benefits pay out during their lifetime, or for a period of up to 20 years to a second generation of beneficiaries.
  • Additional gifts may be added periodically.