Planned Giving

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 they have the rewards as a result.

Susan: "I was one of the lucky ones. It was a very tough time for me and my family. Did they make a difference? Only in every aspect of my life! I don't know where I'd be today without their support and prayers."

Fred: "We know how important the work of a ministry is to a community, and we know how difficult it is for them to develop the funding they need. Facilities, up-to-date equipment, getting staff - it's all literally urgent. We know that the local ministries need our help."Susan and Fred

Susan: "We benefited because they had been supported by others before us - now we can give back. And what a joy it is to know that while we no longer need the income, it is going to someone who does. It's awesome - we are helping to change lives now and yet the assets will be there for our children after we're gone!"

Fred: "That's why Susan and I made the decision. The trust will provide income to them and we can see it benefitting His work. But we have the peace of mind knowing that our estate will be there to help our immediate family after we're gone."

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 pNew Hope Presbyterian Churchercentage 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.

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Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Planned Giving section has been developed for the Presbytery by Future Focus. Please report any problems to section webmaster.