Charitable Remainder Annuity Trust (CRAT)

Charitable Remainder Annuity Trust (CRAT)

If you’re seeking a dependable income stream while also reducing taxes on appreciated assets, a charitable remainder annuity trust (CRAT) may be a strong fit.

This giving option provides fixed payments for life or for a set number of years, while ultimately supporting Roger Bacon High School.

How It Works

A charitable remainder annuity trust is designed to provide stability and long-term impact:

1. Fund the Trust
   You contribute cash or appreciated assets—such as stock or real estate—into the trust.
2. Tax-Efficient Sale
   If appreciated assets are used, the trust can sell them without immediate capital gains taxes.
3. Receive Fixed Payments
   The trust pays a set amount each year to you (or other beneficiaries you name), based on the value of the trust at the time it is created.
4. Support Roger Bacon
   Once the trust term ends, the remaining assets benefit Roger Bacon High School.

Key Benefits

A CRAT offers a combination of predictability and tax advantages:

• Fixed, reliable income for life or for a term of up to 20 years
• Potential to avoid immediate capital gains taxes on appreciated assets
• Eligibility for a charitable income tax deduction when the trust is established
• Opportunity to make a meaningful future gift to Roger Bacon

Built for Stability

Unlike other giving vehicles that may fluctuate, a CRAT provides consistent annual payments that do not change over time. This can be especially appealing if you prefer steady, predictable income regardless of market conditions.

A Smart Planning Tool

A charitable remainder annuity trust can help you:

• Turn appreciated assets into a steady income stream
• Reduce tax exposure
• Plan confidently for retirement
• Leave a lasting legacy for future Spartans