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Charitable Remainder Trusts
Goal: Secure payments for life while reducing market risks
Benefit: Potential increased income and tax benefits
and Fred know what hard work is all about. And they have the rewards as a result.
I was growing up, we didn't have a lot. But, because of the generosity
of others, when we needed help in an emergency, they were there. It was
a very tough time for me and my family!
Fred: "We know how important help is when it is needed, and we know how difficult
it is for them to maintain their facilities, keep their equipment up-to-date,
and get volunteers trained and organized."
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 someone who does. It's awesome - we are
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 vital to our community."
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.
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.
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.
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.
click here to meet Phil and Alicia.