The donor transfers an asset to the trustee of the charitable remainder annuity trust (CRAT) and receives a fixed dollar amount for each year thereafter. A current income tax deduction is also available.

When the donor or other named beneficiary dies, the remaining trust assets pass to the designated charity.

Note: The income tax deduction is based on a government determined applicable federal rate and may have to spread over more than one year, if it exceeds certain percentage of income limitations.

This document was last modified on July 26, 1999

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