Charitable Remainder Trusts
Goal: Secure payments for life while reducing market risks
Susan: "When I was growing up, and now in my married life, music has always been a significant part of my life. It is just something I have always enjoyed."
Fred: "We have really enjoyed getting to see live performances, often by those who have entertained us for years but we never saw. We know how difficult it is for them to maintain their facilities, keep their equipment up-to-date, and get quality performers."
Susan: "We benefited because they had been supported by others before us — but now we can give back. And what a joy it is to know that when we no longer need it, part of it is going to keep something going that we love. It's awesome — we are changing lives!"
Fred: "That's why Susan and I made the decision. Not only will the trust provide income to us throughout our lifetimes, but we have peace of mind knowing that the remainder will benefit an organization that's been a huge part of our lives."
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.
Additional information on charitable remainder trusts is available. Charitable remainder trusts provide a good degree of flexibility that is valuable in charitable gift planning, especially when dealing with appreciated assets. For example, a variation on remainder trusts can be an effective way to make gifts of real estate.
Susan and Fred are happy that they have made a difference; a difference that will have a profound impact on the lives of others.
For more information or a confidential discussion of your charitable options, please email or call the Development Director, Susan Lefkowich, at 510 644-2020 ext. 114.