Are you concerned about required minimum distributions (RMDs) bumping you into a higher tax bracket? If you are among the charitably inclined, your donations could offset the increase to your taxable income.
Everyone has different reasons for donating to charity. Beyond the benefits to the community and the increased happiness of the donor, charitable donations are also an effective way to reduce your tax burden. Often, people tend to get so wrapped up in the why behind charitable giving that they forget about the how.
A Charitable Remainder Trust (CRT) is an irrevocable trust that provides income to beneficiaries until a specified time, after which the remainder of the assets in the trust are donated to a charity. Utilizing a Charitable Remainder Trust is a gifting strategy that has tax benefits and can accomplish both charitable and estate planning goals.