What constitutes a charitable remainder trust?

A charitable remainder trust refers to a trust that an individual can create and transfer assets to. In return, the individual will receive annual payments in the form of an annuity or a percentage. Once the predetermined period ends, any remaining assets in the charitable remainder trust will be bequeathed to a charitable organization. One major advantage of establishing a charitable remainder trust is that the individual setting it up can claim an income tax deduction in the year of its creation.