You have accumulated an investment portfolio over a lifetime. The assets have substantially appreciated in value and worked well for you, but your financial goals are evolving. You now want a source of income without the time, effort, and complexity of managing your investments. If you sell the assets you’ll lose much of the gain to taxes.

Consider achieving your objectives with a gift to either a Charitable Remainder Unitrust (CRUT) or a Charitable Remainder Annuity Trust (CRAT). 

A Charitable Remainder Trust will likely help you to achieve your goals. The trust is tax-exempt, so all investment transactions within the trust are free from taxes. When you transfer appreciated assets into the trust no taxes are due. You will receive a generous income tax charitable deduction for a portion of the value of the assets. You name those individuals to receive income from the trust. You also name the charities to receive any remaining assets when the trust terminates.

In many cases you will receive more income than you are currently getting from those investments you decide to contribute to the trust. If you want trust distributions of a fixed amount on a set schedule (often quarterly), then a Charitable Remainder Annuity Trust is right for you. If you want the possibility—but not the guarantee—of having your trust distributions increase over time, then a Charitable Remainder Unitrust might meet your objectives.