Charitable Remainder Annuity Trust Presentation

Charitable Remainder Annuity Trust Presentation

Article posted in Charitable Remainder Trust on 15 September 2017| comments
audience: National Publication | last updated: 15 September 2017


Charitable Remainder Annuity Trusts are sometimes perfect for older clients with a low risk tolerance because of the level payments regardless of the trust's value. Here is a FREE presentation you can use to explain the CRAT. Read and download the tool now.

By: Lee Hoffman

I’ve always found it helpful to have a presentation that I can use with a prospective donor that is interested in a CRAT. In the beginning, it’s all about just going over the basics, not doing the actual design and getting into too many details. I never know the questions that they will ask. Once you get into the conversation they’ll have questions.

So you start talking about the fact that the CRAT is a split interest trust and it’s called that because your client will receive income now and the charity will receive the remainder later. You then tell them that they’ll receive an income tax deduction for a portion of the assets they transfer to the trust.

Then the questions come.

  • How much is the deduction?
  • How is it calculated?
  • How long can the trust last?
  • What are the major benefits?
  • Etc.

And as their interest peaks and you provide them with more information, their questions increase. I’ve always found it helpful to have the answers to their questions with each answer on a separate sheet. And then it’s nice to have something you can leave with them that they can review at their leisure.

So, this is what I’ve developed and used over the years.

Click to download the PDF and print it out.


Lee Hoffman

P.S. Please remember that the CRAT is VERY sensitive to the 7520 rates, so you’ll need to run the calculation on your client to see if the trust will even qualify based on the 10% remainder test and the 5% probability test. In other words, don’t suggest it until they know they can create one!

P.P.S. And please let us know if you’d like more of this type of content to help you in your charitable planning practice. Just leave a comment belowRemember, you need to be logged in to your PGDC member account to leave a comment.

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7520 Rates:  October 3.4%  September 3.4%  August 3.4%

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