Charitable Remainder Trusts

There was a time when her parents were afraid Nancy would be able to walk, much less play golf. But the doctors were able to craft a "miracle" and as an adult, Nancy leads a full and normal life.

Nancy: "I was one of the lucky ones. It was a very tough time for me and my family, but they were there when we needed a little help. Did it make a difference? Only in every aspect of my life!

Roland: "It's incredible what happened to Nancy. I look at her and I can't believe the stories she and her parents tell me. If it was for the hospital, I don't know what might have happened. We certainly wouldn't be married - we met on a ski trip and Nancy wouldn't have been there without the skill of those doctors."

Nancy: "I received state-of-the-art care because others before me had been generous and kind. They helped me and now I can help others who need it. It's only right that I do this."

Roland: "While we're alive, the trust we set up pays us an income. When we're gone, the rest of the trust goes to an organization that's doing really good work."

There are two different types of charitable remainder trusts.

A charitable remainder unitrust (see example) is a popular way to achieve tax benefits as well as a fixed annual percentage on the value of the assets in the trust. The assets are revalued annually and, if the trust value changes, the payment to the beneficiary(ies) changes.

A charitable remainder annuity trust is set up to pay a fixed rate of return based on the initial valuation at the time the property is placed in the trust. The trust assets are never revalued.

Some additional information on charitable remainder trusts is also available. Charitable Remainder Trusts provide a good degree of flexibility that is valuable in charitable gift planning. For example, a variation on remainder trusts can be an effective way to make gifts of real estate.

Because Nancy had been helped, it was easy for her to help in return. The fact that it was also a good investment just made the whole concept that much nicer.

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Planned Giving section has been developed for Driscoll Children's Hospital by Future Focus.
Please report any problems to webmaster. Revised: September 10, 2003 10:14.