LEGACY OR ENDOWED GIFT

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 whose health was a matter of genes, not decisions. But I had a good friend who wasn't as lucky. It is awful as a young child to have to deal with a friend who is seriously ill. It's scary. You don't know what is going on and you're almost afraid to find out"

Fred: "We know how important knowledge is, and we know how difficult it is for schools to develop the appropriate programs and keep them up-to-date. It is so important for youth to know how to make healthy choices."

Susan: "We both benefited from making healthy choices - 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 young people and health education as a whole."

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.

Return to the Legacy Giving home page or to the Quick Guide to Legacy Gifts.

For more information or a confidential discussion of your charitable options, please email or call J. Anita Ray, CFRE, Director of Development, at (317) 924-0904.

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 Ruth Lilly Health Education Center by Future Focus. Please report any problems to section webmaster.