Charitable Remainder Trusts | Ways To Give | OETA

Charitable Remainder Trusts, or CRTs, provide people with a way of making a very substantial future gift to OETA without depriving them of the income they may need during their lifetime.

How CRTs Work

You transfer assets (cash, stocks, bonds or real estate in most cases) to a trust. The trustee may sell the assets and reinvest the proceeds in a portfolio of stocks and bonds. You receive an income for life after which the trustee distributes the remaining assets to OETA and any other charities you have designated.

Types of CRTs

  • Charitable Remainder Annuity Trust (CRAT)
    The CRAT pays the income beneficiary a specific dollar amount that does not change during the time the CRAT is in existence.
  • Charitable Remainder Unitrust (CRUT)
    The CRUT pays the income beneficiary a variable income based on a percentage of the trust assets as valued each year. That percentage must be at least 5% and in most cases would be in the 5%-7% range.

Tax Benefits

When you create a CRT, you are making an irrevocable commitment to a qualified nonprofit organization of a future gift. IRS allows you to deduct a portion of the amount transferred to the CRT as a charitable gift in the year the CRT is funded.

Another tax benefit is that when you fund a CRT with appreciated stocks, bonds, or real estate owned for more than one year, your lifetime income and your income tax deduction are based on the current fair market value of the assets. They are not reduced by the capital gains tax that would be due on the sale of these assets.

To Learn More

Estate plans should be made with your financial advisor.  OETA Foundation will be happy to work with you and your professional advisor to discuss the benefits of the plans listed here and how they can work for you. Please contact us anytime.

Louise Lee
OETA Foundation
7403 North Kelley Avenue
Oklahoma City, OK 73111