As we’ve seen, a high interest rate environment can generate financial challenges, such as tighter lending standards and reduced consumer spending. But it may also present certain opportunities for charitably inclined individuals.
Thanks to a formula prescribed by federal tax regulations, a high interest rate environment may enhance the benefits of a certain type of trust, the charitable remainder annuity trust (CRAT), which can benefit a donor’s selected charity in the future while providing a stream of fixed regular payments to the donor in the meantime.
