This webinar will take a comprehensive look at charitable remainder trusts (CRTs) as a means to reduce estate and income taxes paid by taxpayers. Procopio Trusts and Estates Partner Renee Gabbard and another panelist will explain which taxpayers are ideal candidates for CRTs, the calculation of the remainder interest and annual payouts, differences in CRATs and CRUTS, and the SECURE 2.0 provision allowing a one-time transfer to a CRAT.

CRTs have been a long-standing way to simultaneously minimize estate taxes, defer income taxes, provide an annual income stream, and be philanthropic while gaining a charitable income tax deduction. Appreciated assets and company stock are ideal assets to contribute to these trusts. The trust sells the assets, allowing the donee to avoid tax on the current-year gain and beneficiaries to postpone recognizing the gain until distributions are made.

As if the historical benefits weren’t enough, current rising interest rates increase the IRC Section 7520 rate and the value of the charitable deduction. Additionally, the new provision in SECURE 2.0 allows a one-time gift of up to $55,000 in 2026 (adjusted annually for inflation) for a qualified charitable distribution (QCD) to a charitable remainder annuity trust. The gift of up to $54,000 also contributes towards the annual QCD limit, which is $111,000 for 2026 taxpayers filing single and $222,000 for married taxpayers filing joint returns.

Along with the benefits are caveats. These trusts are irrevocable and can be complex to administer. Trust and estate advisers utilizing CRTs need to understand how to avoid missteps and maximize the benefit of these trusts.

Learn the benefits and caveats of using CRTs to minimize estate and income taxes.