This is an arrangement in which an individual, through his will or during his life, gives money or property to a trust for the ultimate benefit of a charity. However, during the life of that individual, if the transfer is made during his life, or during the life of the lead beneficiaries, if made through his will, the individual or lead beneficiaries receive the benefit of the money and property until death or until the expiration of a certain time period. At this point, the charity receives the principal of the trust. If done during the life of the individual, this device avoids any capital gains tax on the donated assets. The individual will also receive an income tax deduction for the fair market value of the remainder interest. It also reduces estate taxes by removing the asset from his estate. If the charitable remainder trust is established through the individual's will, it will provide an estate tax deduction which will reduce or eliminate federal estate tax.