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Barbara and Craig can remember when there was no time to think about it - it was just a rush to the emergency room.
Barbara: "Because others before us had taken the initiative and raised support for the hospital, when we needed help it was right there. We didn't have time to go somewhere else. If it wasn't for them, I don't think Craig would be here."
Craig: "I know firsthand how important that hospital is. And I know how difficult it is to balance their books with all the demands on funds and the limits on insurance payments. If they have to cut too many corners, maybe some piece of equipment won't be there when it is desperately needed."
Barbara: "It wasn't difficult for Craig and I to make this decision. It made financial sense for us, what with the tax savings and the income for the rest of our lives. But it also made personal sense. We needed them and they were there. They need our support. How could we do any less?"
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.
A graphic
example of a charitable remainder trust is available.
Barbara and Craig are happy that they have made a difference; a difference
that will have a profound impact on the lives of others.
Now learn about Charitable Lead Trusts and meet John and Karen.
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