Charitable Remainder Annuity Trust (CRAT)

giftingA charitable remainder annuity trust, or CRAT, is a trust with both charitable and noncharitable beneficiaries. When the trust is created, the charity’s interest in the trust assets is a “remainder interest,” which means it is second in line to someone else’s interest. For this reason, this trust is characterized as a remainder trust. A CRAT works like this:

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