A charitable remainder trust is a split interest trust, benefiting two interested parties. These types of arrangements provide income to the donor or other specified individuals as established in the governing trust document and leave the remaining trust assets to charitable organizations.

Characteristics include:

• Use of the tax status of charitable organizations provides financial benefits to two different groups of beneficiaries.

• For individuals with highly appreciated assets with charitable giving intentions, can help generate retirement income.

• If funded with highly appreciated assets, can convert to income producing property while deferring capital gains tax erosion.

• Defer capital gains tax on highly appreciated assets, receive an income tax deduction in the year gifted, and turn assets into an income stream.

• Benefit charitable organizations who receive the trust's remaining assets upon termination of the trust or at donor's death.