If you are not able to make contributions to individual retirement accounts or other retirement plans, you can still use the tax-exempt status of a CRT to build for yourself the equivalent of a retirement plan.
For example, let’s say that you are fifty-five years old and own stock for which you paid very little. It is now worth a substantial sum, but yields almost no income. If you sell the stock, you will owe capital gains taxes on its entire increase in value. This will leave less for you to reinvest for your retirement when you will need additional income. After careful thought and study, you decide to give the stock to a CRT. The trust can sell the stock without paying taxes on the gain. Since the entire value of the stock will be available to invest, you will receive more yearly income for the rest of your life than if you had sold the stock and reinvested the balance. As an additional benefit, you will receive a charitable income tax deduction that can be used to offset some of your other income.