How charitable remainder trusts work: With the help of your financial and/or legal advisors, cash or other assets are transferred into a trust that is created under state and federal laws. Trust payments can be made to you and/or one or more other persons for life or for a period up to twenty years. The amount of income received may be fixed at the time the trust is created (charitable remainder annuity trust), or the trust can be created so that income will fluctuate with the performance of the assets in the trust (charitable remainder unitrust). In some cases, payments may be tax-free or taxed at lower rates than other income. When the trust period ends, the property remaining in the trust passes to the charity you designate, such as The Masonic Charity Foundation of Connecticut.