[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.amorusolaw.com\/blog\/charitable-trusts-are-desirable-in-regards-to-capital-gains-rye-brook-ny\/#BlogPosting","mainEntityOfPage":"https:\/\/www.amorusolaw.com\/blog\/charitable-trusts-are-desirable-in-regards-to-capital-gains-rye-brook-ny\/","headline":"Charitable Trusts Are Desirable In Regards to Capital Gains","name":"Charitable Trusts Are Desirable In Regards to Capital Gains","description":"Don\u2019t be surprised if your CPA or financial planner starts babbling acronyms: CRUT, CRAT, NICRUT, NIMCRUT, Flip CRUT. Hear him out. The higher federal tax rates that kicked in this year have given all these variants of the four-decade-old charitable remainder trust new appeal for upper-income folks. Charity doesn\u2019t always mean a one-way act of […]","datePublished":"2013-09-05","dateModified":"2024-03-20","author":{"@type":"Person","@id":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/#Person","name":"Amoruso & Amoruso LLP","url":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/","identifier":5,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Amoruso & Amoruso LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b019aff2cada3.jpg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b019aff2cada3.jpg","height":600,"width":428},"url":"https:\/\/www.amorusolaw.com\/blog\/charitable-trusts-are-desirable-in-regards-to-capital-gains-rye-brook-ny\/","about":["Charitable Giving","Estate Planning","Trusts"],"wordCount":357,"keywords":["Charitable Remainder Trust","Charity","Estate Planning","Trusts"],"articleBody":"Don\u2019t be surprised if your CPA or financial planner starts babbling acronyms: CRUT, CRAT, NICRUT, NIMCRUT, Flip CRUT.Hear him out. The higher federal tax rates that kicked in this year have given all these variants of the four-decade-old charitable remainder trust new appeal for upper-income folks.Charity doesn\u2019t always mean a one-way act of giving. Sometimes it is good to \u201cgive and receive.\u201d Depending on your assets, you might want to consider creating a charitable shelter trust.These trust are known by some rather silly acronyms, like CRUTs, CRATs, NICRUTs, NIMCRUTs, or Flip CRUTs. Nevertheless, the power behind this alphabet soup of sorts can cut your capital gains taxes or fund a retirement while benefiting your favorite charity at the expense of the IRS.The world of the CRUT and all its brethren is familiar to some, but alien to many. If you are among those in need of some background education on this timely subject, then a couple of recent articles from Forbes are worth reading.The first is titled \u201cCharitable Shelter: How CRUTs Cut Capital Gains Tax.\u201d As this article notes, you can use a CRUT, or Charitable Remainder Unitrust, to cut your capital gains taxes by using the trust to sell highly appreciated assets without triggering any taxation, to provide you with an annual income stream, and then to leave the remainder to charity. With all increases in the capital gains tax considered, and other specific taxes besides, a CRUT can mean preserving more than 20-30% of the value of the asset of the top to benefit you and charity.For some additional perspective on the use of charitable trusts consider reading a companion article of real stories from Forbes titled \u201cThree Donors Tell Why They Set Up CRUTs.\u201dAs you might imagine, choosing the right charitable remainder trust depends a great deal on your assets, your needs, and the likely timespan before the charitable part comes into play. As with all estate planning, this is not a do-it-yourself project.Reference: Forbes (August 14, 2013) \u201cCharitable Shelter: How CRUTs Cut Capital Gains Tax\u201dForbes (August 14, 2013) \u201cThree Donors Tell Why They Set Up CRUTs\u201d"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.amorusolaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Charitable Trusts Are Desirable In Regards to Capital Gains","item":"https:\/\/www.amorusolaw.com\/blog\/charitable-trusts-are-desirable-in-regards-to-capital-gains-rye-brook-ny\/#breadcrumbitem"}]}]