Article on Charitable Remainder Trusts

Nathan R. Brown (Proskauer Rose LLP) recently published an article entitled, A Primer on Charitable Remainder Trusts, Estates, Gifts, and Trusts Journal 1-11 (2014). Provided below is the article’s introduction: 

With income tax rates as high as 39.6% and an additional 3.8% tax on net investment income, on the one hand, and a 40% federal transfer tax rate and a $5,000,000 estate tax exemption indexed annually for inflation ($5,340,000 in 2014), on the other hand, individuals are increasingly shifting their focus toward estate planning techniques that provide not only future estate tax benefits, but also immediate income tax benefits. For those individuals who are charitably inclined, a charitable remainder trust may be an excellent vehicle to reduce future estate tax, obtain an immediate income tax deduction, and benefit charity. As its title suggests, this Article is intended to serve as a general primer on charitable remainder trusts, setting forth the basics that all estate planners should know in order to effectively advise their clients.