Here's how this combination works:

Charitable Remainder Trust (CRT)

A CRT is an irrevocable trust that provides income to the donor or other beneficiaries for a specified period, either for life or a set number of years, with the remainder of the assets going to a designated charity at the end of the term. The key benefits of a CRT include:

• Income Stream: The trust generates regular income payments to the donor or beneficiaries, which can be structured as either a fixed annuity (CRAT) or a percentage of the trust's assets (CRUT).
• Tax Advantages: Donors receive an immediate charitable income tax deduction and avoid capital gains taxes on appreciated assets transferred to the trust.
• Estate Planning: Assets in the CRT are excluded from the donor's estate, potentially reducing estate taxes.

Donor-Advised Fund (DAF)

• A DAF acts as a charitable investment account for supporting organizations donors care about. When combined with a CRT, it provides additional flexibility:
• Remainder Beneficiary: Naming a DAF as the remainder beneficiary of a CRT allows donors to defer deciding on specific charities until later, offering adaptability in philanthropic goals.
• Ongoing Family Involvement: Donors' families can continue to recommend grants from the DAF, maintaining involvement in charitable decisions over time.
• Investment Management: The donor's financial advisor can continue to manage the investments within the DAF, ensuring consistent oversight and strategic growth of assets.

Strategic Benefits

By coupling a CRT with a DAF, donors gain significant control over their charitable giving. This combination allows them to enjoy lifetime income benefits while planning substantial future gifts. It also simplifies adjustments to charitable designations without costly legal amendments, making it an attractive option for those seeking both financial security and philanthropic impact.