![Teitell GettyImages-1184142404.jpg Teitell GettyImages-1184142404.jpg](https://eu-images.contentstack.com/v3/assets/bltabaa95ef14172c61/bltca93b0898b669529/6734cc3f976053c9f5d1c574/Teitell_20GettyImages-1184142404.jpg?width=1280&auto=webp&quality=95&format=jpg&disable=upscale)
Inter vivos charitable remainder trusts (CRTs) are often advantageous alternatives to bequests to charity. Unlike charitable gifts by will, CRTs can generate life income and income tax charitable deductions. Most estates aren’t subject to tax; for those that are, estate taxes are also saved by lifetime CRTs.
Inter vivos CRTs provide life income to the donor and/or others, favorable taxation of life income payments and reduce or eliminate capital gains taxation on changing appreciated investments.
But there’s an ugly side to CRTs involving off-the-wall and unethical schemes using charitable remainder annuity trusts (CRATs). The Internal Revenue Service is cracking down on these abusive tax schemes using CRATs to ostensibly avoid federal in...
Unlock All Access Premium Subscription
Get Trusts & Estates articles, digital editions, and an optional print subscription. Choose your subscription now and dive into expert insights today!
Already Subscribed?