Real Estate CRT: What It Is, How It Works, and Why It Matters for Charitable Giving

When you donate real estate CRT, a Charitable Remainder Trust that holds property like land or a home instead of cash. Also known as CRT with real property, it lets you give away valuable assets while still getting income and tax benefits—without selling the property first. This isn’t just for wealthy donors. People use it to avoid capital gains taxes, support causes they care about, and plan for their family’s future—all at once.

A charitable remainder trust, a legal tool that holds assets for charity after providing income to the donor is the backbone of this setup. You transfer your property into the trust, the trust sells it (tax-free), and invests the money. You get paid a fixed amount or percentage each year, and when you pass away, the rest goes to your chosen charity. It’s a win-win: you reduce your tax bill, keep cash flow, and leave a legacy. But it’s not simple. The trust is irrevocable, meaning once you put the property in, you can’t take it back. You also face setup costs, trustee fees, and complex rules around how much income you can receive. That’s why many people look at the CRT disadvantages, the risks like loss of control, fluctuating income, and potential mismanagement before deciding.

Real estate CRTs are different from cash donations. You can’t just write a check and call it done. The property has to be appraised, cleaned of liens, and structured correctly. And not every charity can handle it—many small nonprofits don’t have the staff or legal support to manage real estate trusts. That’s why this option is often used by people who already have a relationship with a well-established nonprofit, or who work with a financial advisor who knows how to navigate the process. If you’re thinking about donating land, a rental property, or even a vacation home, a real estate CRT might be the smartest move you’ve considered—but only if you understand the trade-offs.

Below, you’ll find real stories and clear breakdowns of how real estate CRTs actually work in practice. Some posts explain the tax rules. Others show what happens when things go wrong. And a few highlight the charities that handle these trusts best. Whether you’re a donor, a nonprofit worker, or just curious about how big gifts shape communities, this collection gives you the facts—not the fluff.