Charitable Remainder Trusts
Goal: Secure payments for life while reducing market risks
Benefit: Potential increased income and tax benefits
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. A graphic example of a charitable remainder trust is available. 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.
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 Vice President of Funds Development, Thomas B. Riford, at (301) 223-1434.
Gifts to Homewood are tax deductible to the extent of the law and all donor information is kept confidential.