Giving through a charitable remainder trust allows you (or someone you select) to receive income for life, knowing that whatever remains will benefit your charitable interests. You do this by placing cash, stock, property, or other assets into a trust that distributes to the "income beneficiary" an annual income for life or for the duration of the trust. You receive an immediate tax deduction for the present value of the gift in the year the gift is made. After death or the end of a specified trust term (up to 20 years), the remainder of the trust transfers to a fund you have named at the Foundation or to a specific charitable organization.
- You may choose to receive a fixed income or receive distributions that vary with the value of the trust.
- The income beneficiary can be you or someone else, including a spouse, sibling, dependent parent, friend, or former employee.
A charitable remainder trust is particularly useful for people who own securities or real estate that have increased in value but earn little income, since the assets, once placed in the trusts, can be sold and reinvested free of capital gains tax.
