Donors use a DAF to avoid capital gain on the sale of an asset, reduce income tax, and endow their charitable giving.

According to IRS statistics, small businesses represent nearly one-third of the value of affluent decedents' estates. CRT planning for small business owners is a critical capability for any gift planning shop. This article describes several CRT options that benefit the small business owner by increasing lifetime cash flow, increasing cash flow and business control to the next generation, increasing employee benefits, and increasing charitable gifts.

An entrepreneur uses a CRT and ESOP to transfer his business to employees, give to charity, and retain a lifetime income stream.

In recent years, there have been a number of PLRs concerning what can be done with income interests in CRTs and PIFs, as well as annuity interests in CGAs. These have been prompted by the increasing interest of charities, donors, and their advisors in such transactions. Yet many gift planners (both planned giving officers and allied professionals) are unsure of what to do when these situations arise. This article fills a need for systematic and clear information on the possibilities, the tax implications, and the procedures.