Charitable remainder trust

An irrevocable trust that pays income to the donor or other named people for life or a term of up to 20 years, then gives what remains to charity. An appreciated asset can be sold inside the trust without immediate capital gains tax, and the donor receives a partial charitable deduction for the projected value of the charity's share. An annuity trust pays a fixed amount; a unitrust pays a fixed percentage of the trust's value each year.