Explaining the CRUT to Your Client

Explaining the CRUT to Your Client

Article posted in Charitable Remainder Trust on 5 March 2015| 8 comments
audience: National Publication | last updated: 8 March 2015
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Summary

Charitable Remainder Unitrusts are sometimes difficult to explain to clients. There are a lot of options. But not if you have the right FREE tool. Read and download the tool now.

I’ve always found it helpful to have a presentation that I can use with a prospective donor that is interested in a CRUT. 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 CRUT 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.

Thanks,

Lee Hoffman

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 below. Remember, you need to be logged in to your member account to leave a comment.

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Comments

Re: Explaining the CRUT to Your Client

Great presentation. Is there a readily available tool to generate and customize a similar presentation. Thanks

Re: Explaining the CRUT to Your Client

Client wants to reserve naming the specific charity to a board of trustees subsequent to his death. I am afraid this is not a completed gift for tax deduction in year crut is established and funded.

Re: Explaining the CRUT to Your Client

There must be a charity or charity named in the document. However, your client can reserve the right to revoke the charity. He could then default to his board of trustees (named in his will?)

Re: Explaining the CRUT to Your Client

Lee, Thank you. This is an excellent, well thought out presentation. One that I know will assist my clients in their understanding of the advantages of a CRUT, and hopefully, keep the conversation on point vs. becoming ensnarled in too many confusing details all too early.

Re: Explaining the CRUT to Your Client

CRUT's are frequently used by families wanting to provide for a disabled family member. A CRUT personal beneficiary payout can be directed to a Special Needs Trust for the benefit of a disabled person. This feature is often overlooked or misunderstood by those drafting a CRUT. In any update of your article consider mentioning this feature.

Re: Explaining the CRUT to Your Client

Would like to have a comparable tool for explaining a CRAT to a client.

Re: Explaining the CRUT to Your Client

That tool will be coming soon. stay tuned

Re: Explaining the CRUT to Your Client

This is terrific...thank you for passing along!

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