A charitable remainder trust (CRT) can convert assets into a stream of lifetime income, provide a current tax deduction and leave the remainder to your favorite charity. Typically, a CRT is funded with income-producing assets, such as real estate and securities. These assets may be supplemented by cash deposits. When you transfer assets to the CRT, you qualify for a current tax deduction based on such factors as the value of the assets at the time of transfer, the ages of the income beneficiaries and the Section 7520 rate. Generally, the greater the payout, the lower the deduction. The trust pays out income to the designated beneficiary for life or a term of 20 years or less.