ezCRAT™ Program Highlights

- The ezCRAT™ is an effective tax and income planning solution for
many clients with highly appreciated assets and deferred annuities,
the type of clients you meet every day.

- The ezCRAT™ provides guaranteed income, an immediate tax
deduction, and a guaranteed charitable gift to the client/donor’s
Donor Advised Fund (DAF) or desired charity.

- The ezCRAT™ is owned by the client, who serves as Trustee.
SPG Network, as Administrator of the Trust, handles all administrative functions throughout the life of the trust, including annual tax filings, thus relieving your client from the hassle of ongoing maintenance commonly associated with charitable remainder trusts. A one-time, initial administrative fee, which can be paid from initial trust funds, is the only cost associated with the ezCRAT™ and will not affect your client’s payout rate.

- The ultimate charitable beneficiary is your client’s charity of choice or DAF sponsored by and offered through a qualified 501(c)(3) public charity. This will allow your client to select and direct which charities will benefit and how they will benefit. To learn more about the power of Donor Advised Funds, visit our Donor Advised Fund section on the left menu button. An ezCRAT™ can provide lifetime income at a high rate and an immediate tax deduction for the donor.

Substantial Tax Benefits

There are three primary ways in which the ezCRAT™ Program can
assist in tax management. First, when transitioning the ownership of
a highly appreciated capital asset (marketable securities, real estate,
business interests, etc) to a charitable trust, the donor does not realize
a lump sum capital gain distribution. The capital gain is reduced
significantly and then amortized over the donor’s life expectancy. This means that a portion of the donor’s ezCRAT™ income will be taxed at the lower capital gains rate.

Second, a substantial immediate income tax deduction is given, which can be used to offset current income taxes up to a certain amount based on adjusted gross income. Any surplus deduction can be carried over up to 5 additional years. The amount of the tax deduction is based upon the projected value of the ultimate gift to charity.

Third, transitioning an asset to an ezCRAT™ removes the asset from the donor’s taxable estate, which can greatly reduce potential estate taxes. In some cases, depending on the type of asset, transitioning an asset can also avoid income with respect to a decedent (IRD) taxation at estate settlement.

Insured Benefits

The ezCRAT™ guarantees your client’s lifetime income by purchasing a commercial annuity from a highly rated insurance company. The ezCRAT™ also guarantees the amount that will fund the client’s DAF or gift to charity by purchasing from a highly rated company either a life insurance policy (assuming insurability) or a deferred annuity. The ezCRAT™ can purchase these products from you, as long as you are properly licensed and can offer products that meet the needs of the Trust. If a client prefers, another investment method can be implemented to fund the amount that eventually goes to the client’s DAF or to charity.

ezCRAT™ Program Schematic -