Charitable Trusts: What They Are and How They Help You Give Better

When you set up a charitable trust, a legal arrangement that lets you give money or property to charity while keeping some benefits for yourself. Also known as a philanthropic trust, it’s not just for the rich—it’s a practical tool anyone can use to make their giving last longer, reduce taxes, and control exactly how their support helps others.

A charitable remainder trust, a specific type of charitable trust that pays you income first, then gives the rest to charity. Also known as a CRT, it’s popular because it lets you turn assets like a house or stocks into a steady income stream while still supporting causes you care about. Many people use these trusts to avoid probate, plan their estate, and get immediate tax deductions. You don’t need millions to start one—some people begin with just a few thousand dollars in cash or property. The key is matching the trust type to your goals: do you want income now? Do you want to give real estate? Are you trying to reduce your tax bill this year or leave a legacy?

Who manages the money? That’s usually a bank, trust company, or trusted individual you name as trustee. They handle investments, pay out income, and make sure the charity gets its share. It’s not magic—it’s legal, transparent, and regulated. And if you’re wondering if it’s worth it, thousands of everyday people in the U.S., New Zealand, and beyond use these tools every year to turn one-time donations into decades of impact.

What you’ll find below are clear, no-jargon guides on how to set one up, what documents you need, how much money you actually need to start, whether you can put your house in it, and which tax rules apply right now in 2025. You’ll also see real examples of how people use these trusts—not just billionaires, but teachers, small business owners, retirees. No fluff. Just what works.