Planned Giving

Charitable Remainder Trusts

Susan and Fred know what hard work is all about. And now they have some time to relax a bit.

Susan: "We are one of the lucky ones. We've been able to work and get along just fine. We've had friends, though, who when they retired, they ran into some financial hardships. That's why it is so important to have organization that are there when a little help is needed.

Fred: "We know how how difficult it is for them to maintain their facilities, keep their equipment and supplies up-to-date, get volunteers trained and organized and have the means to help when it is needed."

Susan: "We are blessed to be in a position where we can give back. And what a joy it is to know that when we no longer need these funds, they are going to someone who does. 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 doing really good work and providing assistance to those who need it."

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.

Susan and Fred are happy that they have made a difference; a difference that will have a profound impact on the lives of others.

Now click here to meet Phil and Alicia.

For more information on planned giving opportunities, contact the Homewood Foundation at 1-800-559-CARE or direct email questions to foundation@hmwd.org.