You then establish the CRT with your attorney, and donate some assets to the trust. You are legally allowed to retain management rights, and are allowed to draw all income that the trust generates until your death. Because you donated the assets to the CRT, you are entitled to a current income tax charitable deduction. This should save you some income taxes this year. Also, once the trust owns the assets, it can sell them without paying capital gains taxes.
Many stocks pay minimal dividends.
Although the income produced by the stocks is very low, the shareholders don t want to sell for fear of capital gain taxes. A CRT eliminates that fear. Since you get the income, your disposable income goes up. When you die, the value of the donated assets passes to the charities you selected. The entire amount of the donation is a deduction from your estate taxes.