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Charitable Remainder Annuity Trust (CRAT)

Are you looking for a way to receive fixed income for life or for a number of years? Are you concerned about the high cost of capital-gains tax with the sale of an appreciated asset? Have you recently sold property and are looking for a way to save on taxes while planning for retirement? A charitable remainder annuity trust may offer the solutions you need.

How you benefit

  • You receive fixed income for life, or for a term of up to 20 years
  • You avoid capital-gains tax on the sale of your appreciated assets
  • You receive an immediate charitable income tax deduction for the charitable remainder portion of your gift to Purdue

How it works

You transfer cash or assets to fund a charitable remainder annuity trust. In the case of a trust funded with appreciated assets, the trust will sell the assets tax-free. The trust is invested to pay fixed income to you—or any other trust beneficiaries you select—based on a life, lives, or a term of up to 20 years. You receive an income tax deduction in the year you transfer assets to the trust, and Purdue benefits from what remains after all the trust payments have been made.

Questions?

Contact Jeanne Butler at jlbutler@purdueforlife.org.

Additional information

If you are tired of the fluctuating stock market and want to receive fixed payments, a charitable remainder annuity trust may provide you with the stability you desire. A charitable remainder annuity trust pays a fixed amount each year based on the value of the property at the time the trust is funded.