A charitable remainder annuity trust (CRAT) is an irrevocable trust which pays a fixed dollar amount each year to a beneficiary, such as the donor of the trust assets, his or her spouse, childe, etc.

After the death of the income beneficiaries or at the end of a set number of years, whatever asets remain in the trust are distibuted to the charities named in the trust.

If additional contributions are desired in later years, new trusts must be established.

• Income Tax Consequences
• Gift Taxation Consequences
• Estate Tax Consequences
• Almost Everyone Benefits

This document was last modified on April 23, 1997

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