---
title: "Real Estate Strategies: How CRTs Help You Save on Taxes and Give Back"
description: Learn how Charitable Remainder Trusts (CRTs) help real estate investors minimize taxes, generate income, and support charitable causes with strategic planning.
image: https://blog.wealthstonegroup.com/hubfs/Wealthstone-Blog2.png
---

- Client Portal

[![Gold-Logo-1](https://blog.wealthstonegroup.com/hs-fs/hubfs/Gold-Logo-1.png?width=2000&height=380&name=Gold-Logo-1.png "Gold-Logo-1")](https://www.wealthstonegroup.com/)

[![Wealthstone-logo-gold](https://blog.wealthstonegroup.com/hs-fs/hubfs/Gold-Logo-1.png?width=2000&height=380&name=Gold-Logo-1.png "Wealthstone-logo-gold")](https://blog.wealthstonegroup.com/)

- [About](https://www.wealthstonegroup.com/about)
- [Real Estate](https://www.wealthstonegroup.com/real-estate)
    - [1031 Exchanges](https://www.wealthstonegroup.com/real-estate/1031-exchanges)
    - [1033 Exchanges](https://www.wealthstonegroup.com/real-estate/1033-exchanges)
    - [721 Exchanges](https://www.wealthstonegroup.com/real-estate/721-exchanges)
    - [Delaware Statutory Trusts](https://www.wealthstonegroup.com/real-estate/delaware-statutory-trusts)
    - [Qualified Opportunity Zones](https://www.wealthstonegroup.com/real-estate/qualified-opportunity-zones)
    - [Private Real Estate Investments](https://www.wealthstonegroup.com/real-estate/private-real-estate-investments)
- [Wealth Management](https://www.wealthstonegroup.com/services)
    - [Investment Management](https://www.wealthstonegroup.com/services/investment-management)
    - [Alternative Investments](https://www.wealthstonegroup.com/services/alternative-investments)
    - [Retirement Income](https://www.wealthstonegroup.com/services/retirement-income)
    - [Tax Mitigation](https://www.wealthstonegroup.com/services/tax-mitigation)
    - [Wealth Preservation](https://www.wealthstonegroup.com/services/wealth-preservation)
    - [Business Exit Planning & ESOPs](https://www.wealthstonegroup.com/services/business-exit-planning-esops)
- Resources
    - [Insights](https://blog.wealthstonegroup.com/insights)
    - [Commentary](https://blog.wealthstonegroup.com/commentary)
    - [Library](https://www.wealthstonegroup.com/library)
    - [Events](https://blog.wealthstonegroup.com/events)
    - [Videos](https://www.wealthstonegroup.com/videos)
- [Contact](https://www.wealthstonegroup.com/contact)

[![View Properties](https://no-cache.hubspot.com/cta/default/44709168/47dd736a-2645-40ed-92a8-f366b8bf509e.png)](https://cta-redirect.hubspot.com/cta/redirect/44709168/47dd736a-2645-40ed-92a8-f366b8bf509e) [Schedule a Call](https://www.wealthstonegroup.com/schedule-a-call)

[![View Properties](https://no-cache.hubspot.com/cta/default/44709168/47dd736a-2645-40ed-92a8-f366b8bf509e.png)](https://cta-redirect.hubspot.com/cta/redirect/44709168/47dd736a-2645-40ed-92a8-f366b8bf509e) [Schedule a Call](https://www.wealthstonegroup.com/schedule-a-call)

- [About](https://www.wealthstonegroup.com/about)
- [Real Estate](https://www.wealthstonegroup.com/real-estate)
  
  
  
  
  
  
  
  
  
    - [1031 Exchanges](https://www.wealthstonegroup.com/real-estate/1031-exchanges)
    - [1033 Exchanges](https://www.wealthstonegroup.com/real-estate/1033-exchanges)
    - [721 Exchanges](https://www.wealthstonegroup.com/real-estate/721-exchanges)
    - [Delaware Statutory Trusts](https://www.wealthstonegroup.com/real-estate/delaware-statutory-trusts)
    - [Qualified Opportunity Zones](https://www.wealthstonegroup.com/real-estate/qualified-opportunity-zones)
    - [Private Real Estate Investments](https://www.wealthstonegroup.com/real-estate/private-real-estate-investments)
- [Wealth Management](https://www.wealthstonegroup.com/services)
  
  
  
  
  
  
  
  
  
    - [Investment Management](https://www.wealthstonegroup.com/services/investment-management)
    - [Alternative Investments](https://www.wealthstonegroup.com/services/alternative-investments)
    - [Retirement Income](https://www.wealthstonegroup.com/services/retirement-income)
    - [Tax Mitigation](https://www.wealthstonegroup.com/services/tax-mitigation)
    - [Wealth Preservation](https://www.wealthstonegroup.com/services/wealth-preservation)
    - [Business Exit Planning & ESOPs](https://www.wealthstonegroup.com/services/business-exit-planning-esops)
- Resources
  
  
  
  
  
  
  
  
  
    - [Insights](https://blog.wealthstonegroup.com/insights)
    - [Commentary](https://blog.wealthstonegroup.com/commentary)
    - [Library](https://www.wealthstonegroup.com/library)
    - [Events](https://blog.wealthstonegroup.com/events)
    - [Videos](https://www.wealthstonegroup.com/videos)
- [Contact](https://www.wealthstonegroup.com/contact)

[![View Properties](https://no-cache.hubspot.com/cta/default/44709168/47dd736a-2645-40ed-92a8-f366b8bf509e.png)](https://cta-redirect.hubspot.com/cta/redirect/44709168/47dd736a-2645-40ed-92a8-f366b8bf509e)[Schedule a Call](https://www.wealthstonegroup.com/schedule-a-call)

<https://blog.wealthstonegroup.com/insights> Insights

#### Share this

[Share on X](https://x.com/intent/post?url=https://blog.wealthstonegroup.com/insights/real-estate-strategies-how-crts-help-you-save-on-taxes-and-give-back&text=Real+Estate+Strategies%3A+How+CRTs+Help+You+Save+on+Taxes+and+Give+Back) [Share on Facebook](https://www.facebook.com/sharer/sharer.php?u=https://blog.wealthstonegroup.com/insights/real-estate-strategies-how-crts-help-you-save-on-taxes-and-give-back&t=Real+Estate+Strategies%3A+How+CRTs+Help+You+Save+on+Taxes+and+Give+Back) [Share on LinkedIn](https://www.linkedin.com/shareArticle?mini=true&url=https://blog.wealthstonegroup.com/insights/real-estate-strategies-how-crts-help-you-save-on-taxes-and-give-back&t=Real+Estate+Strategies%3A+How+CRTs+Help+You+Save+on+Taxes+and+Give+Back)

# Real Estate Strategies: How CRTs Help You Save on Taxes and Give Back

 by [**Paulo Aguilar, CFA, CAIA**](https://blog.wealthstonegroup.com/insights/author/paulo-aguilar) on Feb 08, 2025

Charitable Remainder Trusts (CRTs) offer a unique way for individuals to support charities while reaping significant tax benefits and securing income. For real estate investors, CRTs are particularly valuable, providing a powerful tool to unlock the value of appreciated properties, reduce taxes, and create a lasting legacy.

### How CRTs Work in Real Estate

CRTs are especially effective for real estate investors looking to transition highly appreciated assets. Here's how they function step by step:

1. **Property Transfer to the CRT: **The investor transfers appreciated real estate—such as investment property or land—into the CRT. Once transferred, the trust becomes the legal owner of the property, initiating the tax advantages.
2. **Sale by the CRT: **The CRT sells the property. Because the trust is tax-exempt, it does not pay capital gains tax on the sale, preserving the full value of the asset for reinvestment.
3. **Income Stream for the Investor: **The sale proceeds are reinvested within the trust, and the CRT provides the donor (or designated beneficiaries) with an income stream for a set period, often for life or up to 20 years. This income can be a fixed amount or a percentage of the trust’s value, depending on the trust structure.
4. **Remainder Goes to Charity: **After the income term ends or the beneficiary passes away, the remaining assets in the CRT are donated to the designated charity, leaving a philanthropic legacy.

### Tax Benefits for Real Estate Investors

CRTs offer a range of financial advantages, making them an appealing strategy for real estate investors:

- **Avoidance of Capital Gains Tax:** When the CRT sells the property, it does not pay capital gains tax, allowing the full proceeds to be reinvested. This eliminates a significant tax liability that would otherwise reduce the sale's value.
- **Income Tax Deduction: **Donors receive a charitable income tax deduction based on the present value of the remainder that will go to charity. This deduction can offset other taxable income, providing immediate tax savings.
- **Estate Tax Reduction: **Assets transferred into the CRT are removed from the donor's taxable estate, reducing potential estate taxes and preserving wealth for heirs.
- **Conversion of Non-Income-Producing Assets: **CRTs allow investors to convert illiquid, non-income-producing assets (like raw land or underperforming properties) into a diversified, income-generating portfolio, creating steady cash flow.

### Types of Charitable Remainder Trusts

CRTs come in two primary forms, each suited to different financial needs:

- Charitable Remainder Annuity Trust (CRAT): Provides a fixed annual income based on the trust’s initial value, offering predictable payments.
- **Charitable Remainder Unitrust (CRUT)**: Distributes a percentage of the trust’s assets, which are revalued annually. This allows income to grow or shrink depending on the trust's performance.

Choosing between these structures depends on your financial goals, the type of real estate asset, and your desired level of income predictability.

### Strategic Planning for Real Estate Investors

CRTs are an ideal solution for real estate investors seeking to maximize the value of their appreciated properties while minimizing tax burdens. By transferring property to a CRT, investors can:

- Avoid heft capital gains taxes.
- Create a steady income stream from reinvested proceeds.
- Support charitable causes meaningful to them.
- Reduce estate taxes and preserve wealth for heirs.

For example, an investor with a $1 million property purchased for $200,000 can transfer it to a CRT. The trust sells the property tax-free, invests the full proceeds, and provides the donor with income for life. At the end of the trust term, the remainder benefits the chosen charity.

### Professional Guidance for a Balanced Approach to Real Estate Wealth and Philanthropy

Charitable Remainder Trusts (CRTs) offer real estate investors a unique opportunity to minimize taxes, generate income, and create a lasting legacy. By converting appreciated properties into diversified, income-generating investments while supporting meaningful causes, CRTs can help achieve both financial security and philanthropic goals.

However, CRTs require precise structuring to comply with IRS regulations and maximize their benefits. Working with experienced financial advisors, attorneys, and tax professionals ensures that your CRT aligns with your financial objectives and legacy aspirations.

At Wealthstone Group, we specialize in helping real estate investors navigate complex strategies like CRTs. Contact us today to explore how we can help you preserve wealth, reduce taxes, and create a meaningful impact through strategic planning.

---

### *General Disclosure*

*This material is provided for informational and educational purposes only and is based on information from sources we believe to be reliable. However, its accuracy is not guaranteed, and it is not intended to be the sole basis for investment decisions or to meet specific investment needs.*

*Wealthstone Group does not offer tax or legal advice. This content should not replace professional advice tailored to your individual situation.*

*Not an offer to buy, nor a solicitation to sell securities. All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided is for informational purposes only. Securities offered through Arkadios Capital, member FINRA/SIPC. Advisory Services offered through Arkadios Wealth. Wealthstone Group and Arkadios are not affiliated through any ownership.*

Topics: [Tax Mitigation](https://blog.wealthstonegroup.com/insights/tag/tax-mitigation)

#### Share this

[Share on X](https://x.com/intent/post?url=https://blog.wealthstonegroup.com/insights/real-estate-strategies-how-crts-help-you-save-on-taxes-and-give-back&text=Real+Estate+Strategies%3A+How+CRTs+Help+You+Save+on+Taxes+and+Give+Back) [Share on Facebook](https://www.facebook.com/sharer/sharer.php?u=https://blog.wealthstonegroup.com/insights/real-estate-strategies-how-crts-help-you-save-on-taxes-and-give-back&t=Real+Estate+Strategies%3A+How+CRTs+Help+You+Save+on+Taxes+and+Give+Back) [Share on LinkedIn](https://www.linkedin.com/shareArticle?mini=true&url=https://blog.wealthstonegroup.com/insights/real-estate-strategies-how-crts-help-you-save-on-taxes-and-give-back&t=Real+Estate+Strategies%3A+How+CRTs+Help+You+Save+on+Taxes+and+Give+Back)

- Recent
- Topics
- Archive

Recent

Topics

- [1031 Exchange (62)](https://blog.wealthstonegroup.com/insights/tag/1031-exchange)
- [Delaware Statutory Trusts (DSTs) (39)](https://blog.wealthstonegroup.com/insights/tag/delaware-statutory-trusts-dsts)
- [Tax Mitigation (34)](https://blog.wealthstonegroup.com/insights/tag/tax-mitigation)
- [Wealth & Estate Planning (21)](https://blog.wealthstonegroup.com/insights/tag/wealth-estate-planning)
- [721 Exchange / UPREIT (15)](https://blog.wealthstonegroup.com/insights/tag/721-exchange-upreit)
- [Business Exit Planning (12)](https://blog.wealthstonegroup.com/insights/tag/business-exit-planning)
- [REIT (10)](https://blog.wealthstonegroup.com/insights/tag/reit)
- [Passive Real Estate Investing (7)](https://blog.wealthstonegroup.com/insights/tag/passive-real-estate-investing)
- [Qualified Opportunity Zones (QOZs) (5)](https://blog.wealthstonegroup.com/insights/tag/qualified-opportunity-zones-qozs)

See all

Archive

- [August 2026 (8)](https://blog.wealthstonegroup.com/insights/archive/2026/08)
- [July 2026 (12)](https://blog.wealthstonegroup.com/insights/archive/2026/07)
- [June 2026 (13)](https://blog.wealthstonegroup.com/insights/archive/2026/06)
- [May 2026 (13)](https://blog.wealthstonegroup.com/insights/archive/2026/05)
- [April 2026 (13)](https://blog.wealthstonegroup.com/insights/archive/2026/04)
- [March 2026 (11)](https://blog.wealthstonegroup.com/insights/archive/2026/03)
- [February 2026 (15)](https://blog.wealthstonegroup.com/insights/archive/2026/02)
- [January 2026 (4)](https://blog.wealthstonegroup.com/insights/archive/2026/01)
- [December 2025 (4)](https://blog.wealthstonegroup.com/insights/archive/2025/12)
- [November 2025 (2)](https://blog.wealthstonegroup.com/insights/archive/2025/11)
- [October 2025 (4)](https://blog.wealthstonegroup.com/insights/archive/2025/10)
- [September 2025 (1)](https://blog.wealthstonegroup.com/insights/archive/2025/09)
- [August 2025 (5)](https://blog.wealthstonegroup.com/insights/archive/2025/08)
- [July 2025 (4)](https://blog.wealthstonegroup.com/insights/archive/2025/07)
- [June 2025 (2)](https://blog.wealthstonegroup.com/insights/archive/2025/06)
- [May 2025 (5)](https://blog.wealthstonegroup.com/insights/archive/2025/05)
- [April 2025 (3)](https://blog.wealthstonegroup.com/insights/archive/2025/04)
- [March 2025 (6)](https://blog.wealthstonegroup.com/insights/archive/2025/03)
- [February 2025 (5)](https://blog.wealthstonegroup.com/insights/archive/2025/02)
- [January 2025 (3)](https://blog.wealthstonegroup.com/insights/archive/2025/01)
- [October 2024 (1)](https://blog.wealthstonegroup.com/insights/archive/2024/10)
- [September 2024 (3)](https://blog.wealthstonegroup.com/insights/archive/2024/09)
- [August 2024 (4)](https://blog.wealthstonegroup.com/insights/archive/2024/08)
- [July 2024 (5)](https://blog.wealthstonegroup.com/insights/archive/2024/07)
- [June 2024 (4)](https://blog.wealthstonegroup.com/insights/archive/2024/06)
- [May 2024 (5)](https://blog.wealthstonegroup.com/insights/archive/2024/05)
- [April 2024 (5)](https://blog.wealthstonegroup.com/insights/archive/2024/04)

See all

### Subscribe by email

![Wealthstone-Logo-GoldWhite-2-1](https://blog.wealthstonegroup.com/hs-fs/hubfs/Wealthstone-Logo-GoldWhite-2-1.png?width=50&height=50&name=Wealthstone-Logo-GoldWhite-2-1.png)

Wealthstone Group is a wealth management firm focused on providing investment and financial guidance for successful business owners, real estate investors and affluent individuals.

<https://www.linkedin.com/company/102671409>

[Real Estate](https://www.wealthstonegroup.com/real-estate)

- [1031 Exchanges](https://www.wealthstonegroup.com/real-estate/1031-exchanges)
- [1033 Exchanges](https://www.wealthstonegroup.com/real-estate/1033-exchanges)
- [721 Exchanges](https://www.wealthstonegroup.com/real-estate/721-exchanges)
- [Delaware Statutory Trusts](https://www.wealthstonegroup.com/real-estate/delaware-statutory-trusts)
- [Qualified Opportunity Zones](https://www.wealthstonegroup.com/real-estate/qualified-opportunity-zones)
- [Private Real Estate](https://www.wealthstonegroup.com/real-estate/private-real-estate-investments)

[Wealth Management](https://www.wealthstonegroup.com/services)

- [Investment Management](https://www.wealthstonegroup.com/services/investment-management)
- [Alternative Investments](https://www.wealthstonegroup.com/services/alternative-investments)
- [Retirement Income](https://www.wealthstonegroup.com/services/retirement-income)
- [Tax Mitigation](https://www.wealthstonegroup.com/services/tax-mitigation)
- [Wealth Preservation](https://www.wealthstonegroup.com/services/wealth-preservation)
- [Business Exit Planning & ESOPs](https://www.wealthstonegroup.com/services/business-exit-planning-esops)

Resources

- [Insights](https://blog.wealthstonegroup.com/insights)
- [Commentary](https://blog.wealthstonegroup.com/commentary)
- [Library](https://www.wealthstonegroup.com/library)
- [Events](https://blog.wealthstonegroup.com/events)
- [Videos](https://www.wealthstonegroup.com/videos)

Company

- [About](https://blog.wealthstonegroup.com/about)
- [Contact](https://www.wealthstonegroup.com/contact)
- [Schedule a Call](https://www.wealthstonegroup.com/schedule-a-call)

Not an offer to buy, nor a solicitation to sell securities. All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided is for informational purposes only. Securities offered through Arkadios Capital, member FINRA/SIPC. Advisory Services offered through Arkadios Wealth. Wealthstone Group and Arkadios are not affiliated through any ownership.

Check the background of this firm/advisor on [FINRA’s BrokerCheck](https://d5fymz04.na1.hs-sales-engage.com/Ctc/5H+23284/d5fYmz04/JkM2-6qcW6N1vHY6lZ3mYN4pK6WlBkpFCW7v0sYg2_wv5_W7ZC5_p9lMpV9N2mLYb3b1Kt3W19_SZt6-rMHvW8_x-wq4sYh1TW4XJbzr2-1sSdVL3HsH3txppfW1K-Z1Q56Lnk2W3s3crW4kSJHHW6241wl4TBfLgW4z17F_4Rzl4pVgZ43M7sNPmVN4mVB-08Rc3zW828Gqx6r8n-YW21lDn24045sWW3wDlGS3pQbHvW1p_B9Z2DSvXwW5mgq3g7XcLCGW6KxHb21y0S0CW39tHnF3KF-sqW72ntxK15y1kXf3wyRhz04).

Copyright © 2026 Wealthstone Group.

[Privacy Policy](https://www.wealthstonegroup.com/privacy-policy) | [Terms of Service](https://www.wealthstonegroup.com/terms-of-service)<https://www.wealthstonegroup.com/privacy-policy>

Please click on the buttons below to view your client portal.

[Right Capital – Financial Planning](https://app.rightcapital.com/account/login)[Black Diamond – Portfolio Management Reporting](https://login.bdreporting.com/Auth/SignIn)

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Paulo Aguilar, CFA, CAIA",
    "url" : "https://blog.wealthstonegroup.com/insights/author/paulo-aguilar"
  },
  "dateModified" : "2025-02-18T20:07:14.674Z",
  "datePublished" : "2025-02-08T13:00:00.000Z",
  "headline" : "Real Estate Strategies: How CRTs Help You Save on Taxes and Give Back",
  "image" : [ "https://blog.wealthstonegroup.com/hubfs/Wealthstone-Blog2.png" ],
  "mainEntityOfPage" : {
    "@id" : "https://blog.wealthstonegroup.com/insights/real-estate-strategies-how-crts-help-you-save-on-taxes-and-give-back",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://blog.wealthstonegroup.com/hubfs/Gold-Logo-1.png"
    },
    "name" : "Wealthstone Group"
  }
}
```