What is a Charitable Remainder Trust?
A charitable remainder trust (CRT) is a gift plan defined by federal tax law that allows you to provide income to yourself or others while making a generous gift to WSPA.

How does a CRT work?
You transfer cash, securities, real estate, or other assets irrevocably into a trust that is managed by a trustee for your benefit or for other beneficiaries you name. The trustee pays you (and/or other beneficiaries) an income (generally for your lifetime). When the last beneficiary dies, the principal that's remaining in the trust - the remainder - comes to WSPA.

What are the tax advantages of a CRT?
You receive an immediate charitable income tax deduction for the value of the remainder interest. You can use this deduction in the year of the gift and carry any unused amounts forward for up to five years.  If you fund a CRT with appreciated assets such as stocks, the trust will avoid immediate capital gains taxes.

Can a CRT help my estate plan?
Yes. Assets placed in a CRT are no longer part of your estate and thus avoid estate taxation.

How much control do I have with a CRT?
A great deal. Within certain limits, you can choose the level of income paid by the trust, who the trustee and investment managers are, and who the income beneficiaries are; you can even have multiple charitable beneficiaries. You could even choose to be your own trustee.

How long can CRTs last?
CRTs may last for the life of one or more persons or for a specified period up to 20 years.

Are their different types of CRTs?
There are two types of CRTs: a Charitable Remainder Annuity Trust (CRAT) and a Charitable Remainder Unitrust (CRUT).

What's the difference between a CRAT and a CRUT?

• A CRAT pays you and/or other beneficiaries you name a fixed annual income for life.
• A CRUT provides you a variable income based on a fixed percentage of the trust assets valued annually.
• A CRUT can provide a hedge against inflation.

How can I use a CRT in my own planning?
A typical use of a CRT is to increase your retirement income. For example, you may own stocks that have appreciated in value since you purchased them but which pay you a low dividend. Selling the stock to reinvest for higher income means paying capital gains taxes.

If you contribute the stock to a CRT, however, you will receive an immediate charitable income tax deduction, start receiving a much higher income, and bypass capital gains taxes.

How else could I use a CRT?
CRTs are useful as a supplement to a qualified retirement plan like a pension or 401k - particularly when you have reached plan limits. The CRT can be set up to begin paying you an income at a later date and still produce an immediate charitable income tax deduction.

Are there any other benefits?
Both types of trusts entitle you to membership in the Angels for Animals bequest society.

For more information, please contact:

World Society for the Protection of Animals
Lincoln Plaza
89 South Street, Ste. 201
Boston, MA 02111

E-mail: wspa@wspausa.org
Phone: 1-800-883-9772
Fax: 617-737-4404