A Charitable remainder trust (CRT) is used to qualify for an estate tax deduction equal to the value of the gift, minimize capital gains, and, of late, a vehicle to stretch IRA distributions after the SECURE Act. A Charitable Remainder Trust can be created during a person’s lifetime or upon death. The term of years for a CRT is capped at 20 years. During that time period, the designated beneficiary (which can be the grantor of the trust) receives payments which can be to income only, an annuity or unitrust amount. The assets compound tax-free, in the same manner as a qualified pension fund or an IRA. The income stream must take into consideration that at least 10% of the trust’s initial value must pass to the charity. Most often, appreciated assets, those with a low-cost basis, are placed into a CRT. The transfer to the trust is a non-taxable event and the CRT can sell the assets without recognizing capital gain. At the grantor’s death, or the end of the 20-year term, the remaining principal goes to the designated charity. The estate gets an estate tax deduction for the bequest. A Charitable Lead Trust (CLT) works in reverse: the charity receives income payments and the remaining principal is left to designated beneficiaries.