PA Charitable Remainder Trusts
By Sean Quinlan, Esq. · Updated January 15, 2025
A Charitable Remainder Trust (CRT) is a tax-exempt irrevocable trust that pays income to a non-charitable beneficiary for life (or a term up to 20 years), with the remainder to charity.
Two flavors
CRAT (fixed annuity) and CRUT (variable percentage of trust value). Each has tradeoffs in income predictability and inflation protection.
Tax benefits
Income tax deduction at funding (present value of charitable remainder); no capital gains tax on the appreciated asset transfer; PA inheritance tax exemption on the charitable portion.
Best fit
Donors with highly appreciated, low-yield assets (real estate, stock) who want lifetime income and a charitable legacy.
This article is general information about Pennsylvania law as of the update date above. It is not legal advice for your situation and does not create an attorney-client relationship. For advice on your specific facts, please schedule a consultation.
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