The New Rules for Charitable Remainder Trusts in 2026

By Brett Gottlieb

If you’re like many of our clients, charitable giving is part of your overall financial plan. Charitable remainder trusts (CRTs) generate income during your lifetime, give you a current tax deduction, and ultimately benefit your chosen charity.

While CRTs are still an outstanding way to share your wealth while also reaping tax benefits, tax code changes under the One Big Beautiful Bill Act (OBBBA) impact charitable remainder trusts in 2026. Here’s a look at what you need to know.

A Quick Look at Charitable Remainder Trusts

A charitable remainder trust is an irrevocable trust that allows you or a beneficiary to receive trust income before the remaining trust assets go to a charity of your choice. This is a quick summary of how charitable remainder trusts work:

• You transfer property into the trust and receive an immediate tax deduction.
• You or another beneficiary receives income payments from the trust for a set term.
• At the end of that term, assets remaining in the trust go to your chosen charity.

In most cases, the trust pays income for either the rest of the beneficiary’s life or for a preset term of up to 20 years.

What New Rules Impact Charitable Remainder Trusts in 2026?

These are some of the OBBBA’s most significant changes affecting CRTs:

There’s a New AGI Floor

Taking full advantage of available tax deductions is a critical part of managing your total tax liability. Unfortunately, one new development reduces charitable deductions for those who itemize.

Starting in 2026, there is an adjusted gross income (AGI) “floor” for charitable deductions. You may only deduct contributions in excess of 0.5% of your AGI. For example, if your AGI is $200,000, you may only deduct your charitable contributions above $1,000.

If You’re in the Top Tax Bracket, Your Deductions Are Limited

Are you in the top marginal tax bracket (37%)? Do you itemize deductions? If so, this change could limit the tax benefits of charitable remainder trusts.

Starting in 2026, if you’re in the top tax bracket, your charitable deductions only offset your taxes at a 35% rate. A 2% reduction in tax savings might seem trivial, but if you’re someone who makes substantial donations, it adds up quickly.

The Gift and Estate Tax Exemption Is Now Permanent

The OBBBA permanently set the gift and estate tax exemption at $15 million for individuals (and $30 million for married couples), and it’s set to increase with inflation each year.

If you are someone who has used charitable remainder trusts to lower the value of your taxable estate, this permanent increase might mean you no longer need to do so. However, charitable giving has monetary and non-monetary benefits regardless of whether your estate is taxable.

Looking for Help Navigating Charitable Remainder Trusts?

Whether you’re already set on opening a charitable remainder trust or you’re weighing your options, having experienced guidance is essential. The process of opening a trust is extraordinarily complex, and even a seemingly small mistake might negate the tax advantages that made CRTs so appealing in the first place.

At Comprehensive Advisor, we focus on building a financial plan as unique as you. We can help you weigh the risks and benefits of charitable remainder trusts and help you determine whether this tax-advantaged giving strategy may be beneficial, alongside working with an attorney to ensure proper legal structuring.  

Think Comprehensive Advisor might be the right firm for you? Contact us to schedule a visit or ask any questions you may have. Alternatively, you may email us at info@ComprehensiveAdvisor.com or call (760) 813-2125.

About Our Advisors

Brett Gottlieb is the founder of Comprehensive Advisor and a financial advisor with nearly two decades of industry experience. He graduated from California State University-Chico with two bachelor’s degrees, in business administration and economics, and is Life Insurance licensed in several states. He is passionate about guiding his clients on retirement income planning, helping each client pursue their specific retirement goals, and defending the assets his clients have worked so hard to achieve. Brett is a California native and currently resides in San Elijo Hills with his beautiful wife and three children.

Our team of qualified professionals have experience in the financial service industry, and our advisors hail from some of the largest independent broker/dealers and banking institutions in the country. They have dedicated their professional careers to creating personalized financial strategies for individuals and families who seek successful retirement planning and currently offer investment advisory services through AE Wealth Management, LLC. Our advisors take a common-sense approach to the planning process and work with clients to create a comprehensive retirement roadmap to help ensure their assets are preserved and they receive the income needed to enjoy their future. Based in Carlsbad, California, they work with clients throughout San Diego County and beyond. Learn more by connecting with Brett on LinkedIn or email them at info@ComprehensiveAdvisor.com.

Investment advisory products and services made available through AE Wealth Management, LLC (AEWM), a Registered Investment Advisor. Insurance products are offered through the insurance business C.A. Financial & Insurance Services. Comprehensive Advisor, LLC is an Investment Advisory practice that offers products and services through AE Wealth Management LLC (AEWM), a Registered Investment Advisor. AEWM does not offer insurance products. The insurance products offered by C.A. Financial & Insurance Services are not subject to investment Advisor requirements. CA Ins. Lic. #6000262. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Discussions of CRTs and other advanced planning strategies are for informational purposes only and do not constitute specific investment or tax advice. 03579664 – 12/25