This is terrific - as long as the estate owner does not decide later that giving away the property was a mistake. Here, the Grantor has a charitable motive and wants a big current income tax deduction, too. Often, however, the Grantor does not want to give up all benefit of the property to be donated. If the Grantor needs lifetime income, a CRT, which is irrevocable, can be an extremely useful tool. This is a very complex topic, with many variations on a common theme.
Great flexibility is possible, but very competent advice is required.
Tax laws and rulings pertaining to CRTs will always be subject to changes that could drastically affect what was a well-conceived arrangement when drafted. That is the amount the Grantor is giving away. It is, therefore, the value of the current income tax deduction. A big additional benefit is that the donated property, and all future price appreciation, is removed from the Grantor's estate. The taxpayer can take an income tax deduction of those amounts in the year the CRT is established.