CHARITABLE REMAINDER TRUST

In order to obtain an immediate income tax deduction, a valuable asset such as a house is placed into an irrevocable trust with either the use or income given to the estate planner. Upon death, the asset goes to the charity. The estate planner receives an income tax benefit for the gift to charity in the year the trust was created. The planner generally receives the use or an income from the asset during his lifetime. An example would be a gift of a bond to a charity with a retention of income for life.