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This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Charitable Remainder Annuity Trust" – news · newspapers · books · scholar · JSTOR (January 2023) (Learn how and when to remove this message)

A Charitable Remainder Annuity Trust (CRAT) is a Planned Giving vehicle defined in §664 of the United States Internal Revenue Code that entails a donor placing a major gift of cash or property into an irrevocable 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.

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.

References

1. "26 U.S. Code § 664 - Charitable remainder trusts". LII / Legal Information Institute. Retrieved 2019-04-11.
2. "Charitable remainder trusts". Fidelity Charitable. Retrieved 2023-08-03.

• Charity in the United States
• Taxation in the United States
• Wills and trusts