Charitable remainder trusts allow you to irrevocably transfer assets, and you and/or your beneficiaries receive payments from the trust for life, or another time period of your choice. The remainder of the trust then goes to St. Jude.
There are two types of charitable remainder trusts:
- A Charitable Remainder Annuity Trust (CRAT) pays a fixed dollar amount to income beneficiaries for life or a term of years, regardless of market conditions. The CRAT cannot accept additional gifts after it has been established.
- A Charitable Remainder Unitrust (CRUT) pays the income beneficiaries a fixed percentage rate for life or a term of years. The annual income amount is based on the current value of the trust's assets, so the payout will increase or decrease based on changes in the trust's value.