The grantor gets a one-time tax deduction based on the value of assets they initially put in the CRAT. In addition, by donating property in-kind to the CRAT, a grantor can avoid capital gains taxes, as the trust, which is tax-exempt, sells the property, not the grantor. There are also gift and estate tax advantages for the grantor. However, any income generated by the CRAT for a noncharitable beneficiary will be taxed as ordinary income.