Charitable Remainder Trusts
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. My dream was
to continue playing, to keep music as part of my life.
And, when I needed a little financial help to to buy a performance violin, the Symphony was there for me."
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 organized."
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. This variation of a unitrust provides that
either the specified fixed percentage of the trust assets or the net income of the
trust is distributed to the beneficiary, whichever is less. This type of trust is often
used to handle real estate as there is no fixed distribution requirement, giving
the trustee time to arrange an orderly sale of the property. A net income charitable
remainder unitrust can be an excellent way to donate appreciated property
and turn it into an income stream as well as acquire tax benefits.
A donor may also add a 'makeup provision" to the trust. This allows a trust to
distribute more than the fixed percentage of the assets in years where the trust's
income exceeded the fixed percentage. In this manner, previous years shortages,
when the trust was not able to earn the fixed percentage payment, may be made up.
Susan and Fred are happy that they have made a difference; a difference that
will have a profound impact on the lives of others.
Now CLICK HERE to meet Phil and Alicia.
For more information, please CONTACT US so we can respond to your specific needs.