As a Ventura County estate planning law firm specializing in charitable trusts, our firm commonly recieves questions about the details of charitable trusts. We have a team of experts with the legal knowledge to answer questions about the process of setting up a charitable trust, and what the benefits of proper estate planning can be.
Our firm can provide expert legal services as estate planning attorneys. We are a Southern California based law firm in business since 1985. We specialize in charitable trusts and estate planning matters.
To learn more about charitable trusts, or if you would like a free consultation to learn if a charitable trust is right for you, please do not hesitate to contact us at (805) 482-2282, or e-mail us.
Does the CRT itself pay income tax?
The most important attribute of the CRT for most donors is that it pays no tax on its income. In particular, and most importantly, it pays no income tax on capital gains from the sale of an asset.
For example, you would transfer an appreciated asset to the CRT, usually an asset that is throwing off a small return. The CRT would sell the asset pay no income tax on the sale, and reinvest all the proceeds in higher paying investments.
Moreover, just as the CRT incurs no income tax liability on the gain realized from the sale of the appreciated property, you would pay no income tax on such gain.
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