Higher Interest Rates Lead to More CRT Funds to a Farmer

A retiring farmer who is setting up a charitable remainder trust can receive more funds due to higher interest rates

Photo by matthew Feeney on Unsplash

One of the tools that we use for retiring farmers to save on income taxes due to the large amount of grain sales in their final year of farming with little or no expenses to offset the income is a charitable remainder trust (CRT).

The farmer will contribute their grain into the CRT. The CRT can sell the grain tax-free and then over time it will make a payment to the farmer (plus spouse, etc. if desired). If the farmer is self-employed, this payment will be exempt from SE taxes.