Charitable Remainder Trust

A Charitable Remainder Trust (CRT) is an irrevocable trust that generates fixed or variable  income for you and/or other beneficiaries for life or a term of years, with the remainder of the trust eventually becoming a gift to Georgetown that will have a lasting impact for future Hoyas. You have the option to designate the trust remainder for a school or program that is meaningful to you.

A CRT provides income for beneficiaries while helping with retirement, estate planning and tax management. CRTs also offer flexibility in the assets that can be used, investment options, and how payments are made. A CRT is an ideal gift for those who want to take care of one or more loved ones while leaving a legacy at Georgetown.

Provides variable income based on market performance

A CRUT offers flexibility and a potentially higher annual income than a charitable remainder annuity trust (CRAT). Annual CRUT payments are based on a fixed percentage of the fair market value of the trust assets and are revalued each year, possibly acting as a hedge against inflation. Additional payments can be made at any time to a CRUT. Using appreciated securities or real estate to fund a CRUT may provide additional tax benefits.

Income payments are tied to the changing value of the trust assets, which means the payment amount will fluctuate. If the value of the assets grows, income payments will increase; but if value of trust assets decline, income payments will decrease.

CRUT minimum: $100,000

Fixed income payments for a term of years

A CRAT provides beneficiaries with a predictable source of income. Annual income is a fixed rate of around 5% of the initial fair market value of the trust assets. These fixed payments may continue for the life of the beneficiary(ies) or for a fixed number of years. Any income earned by the trust that exceeds the annuity amount is added to the trust principal. If trust earnings are insufficient to meet the annuity amount, principal is used to make up the deficit.

A CRAT can be funded using cash or securities, and entitles you to a current tax-year charitable deduction. In addition, if you use appreciated securities to fund the trust, you may be able to avoid capital gains tax on the appreciation in the year of the gift and can instead spread this liability over a period of years. Additional contributions cannot be made to a CRAT. After the trust terminates, the remaining assets pass to Georgetown and become a gift to support the school or program most meaningful to you.

CRAT minimum: $100,000; $50,000 (NY and CA only)

If you are interested in learning more about a CRT, use our calculator below or fill out our information request form and we’ll send you a complimentary, no-obligation illustration. To further discuss charitable trusts, contact the Office of Planned Giving at (800) 347-8067, by email at plannedgiving@georgetown.edu or through our information request form.

See how a CRUT or a CRAT could work for you and your loved ones using the calculator below:

Information on this page is not legal or financial advice and all examples illustrations are subject to change based on your unique circumstances. Please consult with your advisors before making your gifts.