Charitable Trusts: Ensure the Future
A Simple Way to Provide for Family and Our Organization
Whether you’re concerned about outliving your assets in retirement or supplementing your retirement income, you’re not alone. Many of our supporters who feel the same way find that a life income plan is an attractive alternative. One such plan, a charitable remainder trust, allows you to benefit a charitable organization such as ours and receive an income stream in return.
With this type of gift, you, or other beneficiaries, if you choose, receive regular income for life (or for a period of up to 20 years). At the end of the trust term, the balance in the trust supports our mission. Another benefit of a trust is that you may gain freedom from investment management.
You can fund a charitable trust with cash, but you receive several additional benefits by funding your trust with long-term appreciated assets.
- You eliminate up-front capital gains tax.
- You may also increase your lifetime income as compared to the yield on the contributed assets.
Two Choices
There are two types of trusts that work this way: Charitable remainder annuity trusts and charitable remainder unitrusts. While both trusts allow you to receive an income tax charitable deduction, there are small but significant differences.
Charitable Remainder Annuity Trust
- You receive a regular, fixed-dollar income based on a percentage of the trust’s initial assets.
- You may not make additional contributions to the trust.
Charitable Remainder Unitrust
- You receive a regular, variable-dollar income (the amount you receive is a set percentage of the current value of the unitrust, redetermined annually).
- You may make additional contributions to the trust.
Involve the Experts
Set up a time to meet with your estate planning attorney. They can help you ensure that your charitable remainder trust is appropriately set up to achieve your personal financial and philanthropic goals.
See What a Trust Can Do
We’d love to discuss how our organization will put your generosity toward our mission. We can partner with your estate planning attorney as you take the following steps. Contact us by phone or email for a no-obligation consultation.
The information in this publication is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your results.