Charitable Remainder Trust

A trust where the donor, or trust creator, receives an income from the trust assets during his or her lifetime. When the donor dies the assets of the trust go to a charity. The donor can sell the assets without paying capital gains tax and receives an annual income. The donor will also receive a tax deduction for the charitable gift and eliminate appreciated assets from the donor's estate.

Charitable Remainder trusts are created under the Internal Revenue Code §664 (26 USC §664) which also applies to charitable remainder annuity trusts and charitable remainder unitrusts.