A Charitable Remainder Annuity Trust, is a Planned Giving vehicle that entails a donor placing a major gift of cash or property into a trust. The trust then pays a fixed amount of income each year to the donor or the donor's specified beneficiary. When the donor dies, the remainder of the trust is transferred to the charity. For example if I wanted to "" or "sell my gold" I would contact a collateral lender or pawnshop in say Beverly Hills or Los Angeles, get the most cash for it, then make the money work for me by investing in a charitable remainder annuity trust, a portion of this is paid to you every month and the portion of this that remains in account when the investor passes is donated to a charity or given to the listed beneficiary named, instead of letting that value set in a jewelry box, when you "sell your gold" or sell your diamond the money works for you, and dose good for the charity named.
Charitable trusts such as a CRAT require a trustee. Sometimes the charity is named as trustee, other times it is a third party such as an attorney, a bank or a financial advisor.
Famous quotes containing the words charitable, remainder and/or trust:
“For my name and memory I leave to men’s charitable speeches, and to foreign nations and the next ages.”
—Francis Bacon (1561–1626)
“Most personal correspondence of today consists of letters the first half of which are given over to an indexed statement of why the writer hasn’t written before, followed by one paragraph of small talk, with the remainder devoted to reasons why it is imperative that the letter be brought to a close.”
—Robert Benchley (1889–1945)
“Nevertheless, no school can work well for children if parents and teachers do not act in partnership on behalf of the children’s best interests. Parents have every right to understand what is happening to their children at school, and teachers have the responsibility to share that information without prejudicial judgment.... Such communication, which can only be in a child’s interest, is not possible without mutual trust between parent and teacher.”
—Dorothy H. Cohen (20th century)