Charitable Remainder Trusts
Goal: Secure payments for life while reducing market risks
Benefit: Potential increased income and tax benefits
Susan: "I was one of the lucky ones. It was a very tough
time for me and my family, but they were there when we needed a
little help. Did it make a difference? Only in every aspect of my
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
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 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."
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.
Return to Legacy Gift Options.