Charitable Remainder Trust (CRT)

A CRT is an irrevocable trust that allows you to:



• Donate appreciated assets (like stock or real estate) to the trust,
• Receive income from the trust for life (or a term of years), and
• Leave the remainder to a charity after you're gone.

Key benefits include avoiding immediate capital gains, getting a charitable deduction, and turning an illiquid asset into a lifetime income stream. But CRTs can be complex to set up, expensive to maintain, and not always a great fit for portfolios under $1 million.

Legacy Income Trust (LIT)

A Legacy Income Trust is a newer, more streamlined charitable giving vehicle. It operates as a pooled income fund, meaning:

• Your assets are combined with other donors in a professionally managed investment pool
• You or your beneficiaries receive monthly tax-advantaged income for life
• At death, the remainder goes to a charity (which you help choose)

It’s simpler, more accessible, and offers generous tax deductions.

CRTs Aren’t Always the Ideal Tool

Charitable Remainder Trusts are powerful but they’re not one-size-fits-all. For smaller portfolios, they may not be worth the administration hassle.

Why a Legacy Income Trust Could Be a Game-Changer

For many clients, the U.S. Legacy Income Trust provides a simpler and more efficient alternative. Here’s what makes it worthwhile:

• Higher Charitable Deductions than CRTs in many scenarios
• Tax-Advantaged Income (not just ordinary income)
• Lower Setup and Maintenance Costs
• No Age Restrictions for beneficiaries
• Less Administrative Burden
• Still Gives You Control over where your charitable dollars end up

Is It Right for You?

If your goals include reducing taxes, generating income, and supporting charitable causes with minimal fuss then the Legacy Income Trust could be a fit. It's especially useful for folks who:

• Want income for themselves or loved ones
• Don’t want the administrative hassle of a CRT
• Appreciate flexibility and simplicity

Next Steps

Let’s explore whether a Legacy Income Trust makes sense for your specific situation. We’d be happy to walk through the mechanics, compare it to a CRT, and help make a smart, aligned decision.