Charitable remainder trusts (CRT) are one of the most flexible donation vehicles available and can be designed to meet many objectives while making a philanthropic impact on the fight against Alzheimer's and other dementias.

To set up a trust, you will need an attorney or financial planner to help. You'll also need to name a trustee who will manage the assets in the trust.

There are two popular options for charitable remainder trusts, and it's important to know which one is right for you and your circumstances.

Charitable remainder annuity trust (CRAT)

You transfer assets to a trust that pays you a fixed amount each year for life or for a set number of years. When the trust ends, the remaining funds go to the Alzheimer's Association.

Charitable remainder unitrust (CRUT)

Similar to a CRAT, but instead of fixed payments, you receive a set percentage of the trust's value recalculated annually, so your payments will fluctuate. If the trust grows, your payments may increase over time.

How a CRT works

• You consult and build a plan with your attorney or advisor. Outline the structure and timing for the trust that works for your family and situation.
• You transfer assets to the trust. Discuss your options with your accountant. Assets could include cash, appreciated securities or real estate.
• You receive fixed or flexible payments based on the type of trust you choose.
  • The CRAT pays you or your beneficiary a fixed, same dollar amount each year for the trust's term.
  • The CRUT payments will fluctuate, but if investments perform well, your total payments over time could exceed those from a fixed-income arrangement.
• You may receive tax benefits. An immediate charitable income tax deduction may be available for the value of the future gift to the Alzheimer's Association, and capital gains tax may be reduced if appreciated assets are used.
• Trust assets are invested. The trustee manages the investments to provide consistent payments and preserve the value of the remainder for charity.
• Charity receives the remainder. When the trust ends, all remaining assets go to the Alzheimer's Association.

Benefits of giving through a CRAT or a CRUT

• Guaranteed income for life or term of years. Receive a fixed or flexible dollar amount each year, depending on the type of trust you choose.
• Potentially higher payout.
  • CRAT payout rates are fixed, and your payments will remain the same and are often more attractive than other fixed‑income investments.
  • CRUT payout rates are flexible. Annual income is based on the fair market value of the assets in the trust, and payments will fluctuate.
• Tax advantages. A portion of your gift may be tax‑deductible and funding the trust with appreciated assets may help reduce or spread out capital gains tax.
• Flexibility in planning. You choose the trust term: lifetime income for one or more beneficiaries, or a fixed number of years, up to 20.
• Meaningful legacy. The remainder of your trust will directly support the fight against Alzheimer's.

Free Resources to Help You Plan

Download free guides from the Alzheimer's Association on wills, trusts and beneficiary designations to help you protect your assets and plan your legacy.

Learn More

Learn More About Planned Giving

Including the Alzheimer's Association in your plans helps fund research, care and support for people living with Alzheimer's and other dementia — now and into the future.

Learn More

Related quick links

• Charitable Gift Annuity (CGA)
• Charitable Lead Trust (CLT)
• Donor-Advised Funds (DAF)
• Gifts That Cost Nothing Today
• Gifts That Pay You Income

Find your local Alzheimer's Association Planned Giving Advisor

Our planned giving team is here to answer questions about including the Alzheimer's Association in a will, trust, beneficiary designations or other legacy planning opportunities. 

Contact the planned giving team

Jill Workman
Alzheimer's Association
Senior Director, Planned Giving
Phone: 866.233.5148
Email: plannedgiving@alz.org