Charitable Remainder Trust

Giving through a charitable remainder trust allows your clients (or someone that they select) to receive income for life, knowing that whatever remains will benefit the donor's charitable interests. Cash, stock, property, or other assets are placed into a trust that distributes to the "income beneficiary" an annual income for life or for the duration of the trust. The donor receives 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 that has been named at the Foundation or to a specific charitable organization.

HIGHLIGHTS:

  • Your client may choose to receive a fixed income or receive distributions that vary with the value of the trust.
  • The income beneficiary can be your client or someone else, including a spouse, sibling, dependent parent, friend, or former employee.
  • The minimum to establish a charitable remainder trust with the Foundation serving as trustee is $100,000.

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 taxes.

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