There are many variations of charitable remainder trusts, but generally they allow you to set up a trust that may pay you or other members of your family income for life. At the death of the beneficiaries the remaining trust assets will pass to the charity of your choice. When you set up the trust you will receive an income tax deduction that can be used to reduce your current income taxes. You may also save on taxes by putting into the trust stocks that were purchased at a low price, but have increased significantly in value. Your charitable remainder trust can sell these stocks without having to pay a capital gains tax which will also help you avoid considerable income taxes. Often people will use the income tax savings from the charitable deduction and avoidance of capital gains taxes to purchase life insurance for their heirs to replace the assets going into the charitable remainder trust. Most often this life insurance is held by an Irrevocable Life Insurance Trust. For details on this kind of a trust see the specific Web site section on Irrevocable Life Insurance Trusts.