CRT’s have nothing to do with land trusts. CRT’s are oversold as a solution to all people’s problems, when in fact they have LITTLE application.
Basically, CRT’s are useful for people who have substantial assets with a low tax basis. The assets are donated to a CRT you set up, which is then converted to cash, and an income stream payed back to the grantor. The sale of the low-basis asset is tax free because of the charitable status of the CRT.
I’ve been studying for months trying to figure out best structure for my situation. I think I want to do an llc for operational liability protection, but move into crt before sale to avoid taxes, (and maybe actually benefit a charity).
I’ve checked the archives and there is very little about crt’s. Can your land trust forms be modified to suit, or do you have an upgrade, or is it a whole different ballgame?