Hi,

I am considering setting up a Charitable Remainder Trust through which I am told that I can get benefit of Income Tax Deduction and Estate Tax Benefit apart of satisfaction of donating my property to a good cause.

Though I am clear with the Estate Tax Benefit, I am unable to figure out how the Income Tax Deduction is calculated. Can any one of you explain the calculation process involved in the same. Heard there is a Applicable Federal Rate(AFR) that will be used but not able to figure out how to calculate using the same.

Many thanks for your help.

Best Regards,
Dilip.

Here's a calculator that could help you. The amount of tax deduction depends on your age (and/or age of your spouse if she is included), how much income you wish to receive from the trust, and the type of trust you are setting up - for example a charitable remainder anniuty trust versus a charitable remainder unitrust.

The National Academies

Hi,

Many thanks for the information. This seems to be very useful.

Best Regards,
Dilip.