There are several different forms of charitable trusts. One of the most popular is a trust that has attractive tax benefits, pays income to family for a period of time and then passes as a remainder to charity. This illustration shows property being transferred into such a charitable trust. The primary benefits are the ability to sell tax free and bypass capital gains and also receive a generous income tax deduction. After the property is sold and reinvested the two donors in this case receive income for their lives. They are able to receive a significantly increased income over prior income. Best of all, the full value of the trust, with no decrease due to payment of capital gains tax, is earning income for their joint life times. This income might be stable or could have a feature that allows it to increase each year. After the substantial income payments have been made for two lives, the principal is then eventually distributed to charity. The reason this trust is permitted to have the generous tax benefits is that the remainder will eventually be distributed to the charity selected by the trust creators.