Hedging a Charitable Remainder Trust with a Life Insurance Trust

So you’ve been patiently explaining all the benefits of a Charitable Remainder Trust to your clients.

You’ve demonstrated how a CRT will save them money over an outright sale and immediate payment of taxes.

You’ve successfully overcome the client’s objection that this is more than they planned on giving to charity when they die, by pointing out that they can receive more than double their original contribution (in some cases) through the lifetime payment of income.

You feel confident that you have answered all your client’s objections, when they hit you with one final question:

“What happens if I die in the first few years after contributing my assets to a CRT?  Won’t my family lose out on all the lifetime income benefits?”

Listen as Tax and Estate Attorney John Erik Fraker addresses these concerns of his client – and how the solution to this concern might involve a substantial life insurance policy.