Understanding the 5% Rule for Charitable Remainder Trusts
Charitable Remainder Trusts (CRTs) are financial tools designed to offer tax benefits while contributing to charity. A key concept in CRTs is the 5% rule, which ensures beneficiaries receive a minimum payout annually. Understanding this rule helps donors and beneficiaries maximize their trust agreement benefits. This article explores the 5% rule's intricacies, its impact on trust earnings, and tips for effective planning.