Can I revoke or change a CRT once it’s created?

No, once the trust is funded, it is irrevocable. You cannot later modify the terms or reclaim assets.

Which is better: CRAT or CRUT?

- A CRAT gives you a stable, fixed payment each year. - A CRUT gives you payments that vary with the trust’s performance, potentially greater in good years, but lower in down years. The best choice depends on your income needs, risk tolerance, and charitable goals.

What types of assets are suitable for funding a CRT?

Publicly traded stocks, bonds, real estate, or other appreciated property can work. For complex assets, additional review and structuring are often needed.

Will I owe capital gains tax when the trust sells the donated asset?

Generally not, the CRT itself is tax-exempt, so it can sell appreciated assets without immediate capital gains tax.

How is the charitable deduction calculated?

It’s based on the present value of the remainder interest expected to go to charity. That takes into account payout rate, term, and IRS assumed interest rates. Regulations require that deduction to meet certain minimums.

Can I still support a specific BHI campus or program with my CRT?

Yes, you can specify in the trust agreement that your remainder gift goes to a particular community or initiative like Benevolent Care, Enrichment, etc.

Charitable Remainder Trusts (CRT)

Build a Legacy with Predictable Income

A Charitable Remainder Trust offers a unique way to support BHI Foundation while retaining an income stream for yourself or loved ones. You transfer assets into an irrevocable trust, receive payments over time, and then the remainder goes to charity, blending philanthropy, tax benefits, and income planning.

How to Get Started

Important Legal Information

Legal name
BHI Foundation, Inc
Address
8330 Allison Pointe Trail, Indianapolis, IN 46250
Tax ID
(EIN) 35-1680796
The BHI Foundation is a 509(a)(3) supporting organization; contributions are tax-deductible under U.S. and Indiana law.

How does a charitable remainder trust work?

Charitable remainder trusts allow you to irrevocably transfer trust assets.
You and/or your beneficiaries receive payments from the trust for life or a set period of time.
The remainder of the trust is then donated to a predetermined charity, like the BHI Foundation

Sample Wording & Key Provisions

Sample Trust Language

“I transfer [describe asset] to a Charitable Remainder Trust for the benefit of [income beneficiary(ies)] for life (or __ years), with the remainder to BHI Foundation, Inc., located at 8330 Allison Pointe Trail, Indianapolis, IN 46250 (Tax ID 26-0262903).”

Important Legal / Tactical Considerations

A CRT must be irrevocable once funded.
CRTs come in two primary forms:
- CRAT (Charitable Remainder Annuity Trust): pays a fixed dollar amount annually
- CRUT (Charitable Remainder Unitrust): pays a fixed percentage of the trust’s value, which is revalued yearly
The payout rate must generally fall between 5% and 50% of the trust’s value (as of the start date)
The remainder interest gifted to the charity must typically be at least 10% of the value of assets placed in the trust (to meet tax rules)
If non-cash assets (e.g. real estate) are used, a qualified appraisal is required, and the trust should be capable of handling sale, maintenance, and liabilities.

Why Consider a CRT

Generate lifetime income while making a charitable gift
Avoid or defer capital gains tax on appreciated assets
Reduce your taxable estate by removing transferred assets
Support BHI’s mission over the long term
Flexible structure: choose fixed (CRAT) or variable (CRUT) payments, and tailor payout terms

Frequently Asked Questions

A charitable remainder trust is a type of irrevocable trust. This means once the trust documents have been created, full control of the trust and its assets are handed over to the beneficiary and are no longer in control of the person who has set up the trust (the grantor).

Contributing to one of these trusts reduces your taxable income and can benefit a philanthropy of your choosing.

There are two main types of charitable remainder trusts: charitable remainder annuity trusts and charitable remainder unitrusts. The two are differentiated by the way they pay out to the beneficiary.

Charitable remainder annuity trust (CRAT)
A charitable remainder annuity trust (CRAT) pays a set income amount to beneficiaries for life or for a predetermined number of years. Once the CRAT has been established, additional gifts cannot be made.

Charitable remainder unitrusts (CRUT)
A charitable remainder unitrust (CRUT) pays beneficiaries a set percentage rate for life or for a predetermined number of years. The annual income amount is based on the trust’s current value, so the payout can increase or decrease depending on how that value changes over time.

A charitable remainder unitrust (CRUT) pays beneficiaries a set percentage rate for life or for a predetermined number of years. The annual income amount is based on the trust’s current value, so the payout can increase or decrease depending on how that value changes over time.

CRTs offer the following benefits:

Once you set up the CRT, you and/or your beneficiaries receive payments from the trust for life or a set period of time.
Setting up a CRT may reduce or even eliminate gift and estate taxes on trust assets passing to family. Future gift assets to your loved ones will be valued on the date you establish the trust. So if the gift appreciates in value, your family wouldn’t have to pay taxes on it later.
You may not be taxed on income earned by the trust. Other tax benefits vary and you should ask your financial advisor for more information.
The BHI Foundation and your community can benefit from receiving annual distributions from the trust and you can see the impact of your gifts.

Trust assets are managed by the trustee that you select.

After the passing of the last income beneficiary, any funds left in the CRT are sent to the named charities.

How to Get Started

If you’re considering a charitable remainder trust and want to explore whether it’s right for you, we’re here to help:

Major & Planned Giving Office

765-543-3289

info@bhifoundation.org

How to Get Started

Discuss with your estate planner or financial advisor whether a CRT fits your goals.
Determine which assets you’ll use (e.g. stock, real estate, etc.).
Choose the payout type (CRAT or CRUT), term (lifetime or a set number of years), and payout rate.
Work with your attorney to draft the trust agreement, naming BHI as the charitable remainder beneficiary.
Fund the trust by transferring the chosen assets.
Notify BHI’s Major Gifts team so we can prepare to receive the remainder gift and properly track it.

We are here to help. Please reach out to:

Major & Planned Giving Office

765-543-3289

info@bhifoundation.org