Charitable-remainder-trust meaning

An irrevocable trust in which property, investments, or money is donated to a charity, but the grantor, or donor, continues to use the property or receive income from the investments or money while still alive. Upon the death of the donor, the charity receives the balance of the trust. The trust is tax- efficient because the grantor avoids paying capital gains tax on the assets in the trust and can deduct the earnings of the trust. The trust also removes the assets from the grantor’s estate, which reduces the amount of estate taxes that will be due after death. Often a charitable remainder trust is created by someone who doesn’t have any family members or children that he or she needs to support. See also charitable lead trust.
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