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SEI Private Trust Company Personal Trust Services Charitable remainder trusts Today, there are more ways than ever to realize your personal vision of philanthropy. The best way to make it happen—while making the most of your giving—is to understand the vehicles available to you, such as a charitable remainder trust. When you donate to a charitable remainder trust (CRT), you can benefit from significant tax savings, increased income, the power of keeping the full value of your assets working, and the satisfaction of supporting a charity of your choice. A CRT allows you to place assets into an irrevocable trust, while enabling you or your beneficiaries to receive the income from those assets for the term of the trust. When the trust ends, the assets will pass to the charity you have designated. Here's how it works: As grantor, you establish an irrevocable trust. An irrevocable trust is a type of trust in which the terms cannot be modified, amended, or terminated without the permission of the grantor's named beneficiary or beneficiaries.1 You then determine the term (a number of years or the lives of the income beneficiaries) and the type of CRT you desire (see below). You also designate a trustee—you may be your own trustee or appoint another individual or corporation. 1. Appoint an individual or individuals as the income beneficiary of the trust. 2. Name a charity or charities, or a donor-advised fund, to receive the assets at the end of the trust's term. 3. Contribute assets into the trust from your estate. 4. The trustee liquidates non-cash assets, and all assets are invested. There is no capital gains tax to the grantor or the trust when assets are liquidated. 5. The trust pays ongoing income from the assets to the income beneficiaries for their lives or the term of the trust. 6. After the period of time you designated or upon the death of the last income beneficiary, the trust passes the remaining assets to the designated charity or charities (could include a donor- advised fund). Overview 1 Source: Investopedia