More Charitable Remainder Trusts Coming

Over at the Chronicle of Philanthropy, Holly Hall has an interesting piece about charitable remainder trusts:

Surge of Remainder Trusts Seen as Baby Boomers Age

The whole thing is well-worth a read, either for review purposes or as a primer on CRTs, but the main thrust can be summarized by two quotes:

"The oldest of America’s 72 million baby boomers are turning 68 this year, the average age at which individuals create charitable remainder trusts. That's likely to produce a surge in such trusts in the next 20 years."

"Aside from the factor of demographics, more people will be interested in charitable trusts because of recent tax changes that increased the amount of capital-gains taxes they will owe after selling a business or other asset."

The question to ask yourself is this: Which of your donor prospects may be a candidate for a CRT? 

Any of the following goals on the donor's part makes setting up a CRT an attractive option: 

  • Wants to make a gift but wants continued income 
  • Wants to diversify out of a highly appreciated asset 
  • Wants to create an income flow for loved one(s)
  • Wants to provide a "safety net" income for children
  • Does not want to add to an IRA but wants to increase savings

You can brush up on or learn the basics of CRTs in the Gift Planning Field Guide, here.