My point is that well-prepared individuals capable of designing and handling CRT's are not readily available as volunteers. Some attorneys who represent the client rely on the charity to do the number-crunching, because the attorneys haven't invested in the required software. All the while the donor thinks she is getting unbiased help from the nonprofit. It's not a pretty picture. Nonprofits have been warned countless times to exercise extraordinary care in accepting gifts in any form that involve real estate.
Cautionary tales abound.
Henry believes, however, that perspective has been lost midst all the horror stories. The idea is for the trust to liquidate the land. If it does that, and if the charity is not the trustee, the charity is not on the hook if some problem with the land subsequently surfaces. In fact, a CRT can be designed to make a charity an income beneficiary, giving it a cash flow as soon as the trust is funded. In fact, improperly drafted or applied, the CRT can backfire badly.