People who make regular donations to nonprofit organizations often set up of charitable remainder annuity trusts (CRATs). As the donor, you receive funds for yourself, your beneficiaries and your favorite charities. In Connecticut, donors may start benefitting once they understand the full benefits of donating to these trusts.
The benefits of the trusts
A charitable remainder annuity trust is a donation made to a charitable trust. Over time, the donor or beneficiary receives a specific amount of income from the trust.
After donating to charitable remainder trusts, the beneficiaries receive tax deductions and reductions on gift and estate taxes. In addition, the trustor or beneficiary receives a regular stream of income for life or for a specific term of years. Decide the amount of money to receive for yourself first and then for the charity.
Donate the money directly to the charity of your choice without having it pass through the hands of other people. A trustor who owes debts or has feuding relatives will not worry about the trust funds ending up in the wrong hands. You and your beneficiaries do not have to go through the complications of probate court. After the CRAT terms end, the remaining assets are passed on to charity, and your donations allow you to leave behind a legacy.
Designating funds for your philanthropic goals
Individuals consider CRAT to receive maximum yearly tax advantages and a regular income for life. Some of the trust funds are reserved for the trustor in a fixed annuity. The remaining funds are given to a charity. This plan is recommended to people who give to charitable organizations regularly.