Charitable Remainder Trusts
Discover which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From 2 Win-Win Ways to Donate.
View My Free BrochureIf you have built up a sizeable estate and are also looking for ways to receive reliable payments, you may want to consider the advantages of setting up a charitable remainder trust.
Benefits of a charitable remainder trust include:
- Potential for a partial charitable income tax deduction
- Potential for increased income
- Up-front capital gains tax avoidance
There are two ways to receive payments with charitable remainder trusts:
- The annuity trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust's assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.
- The unitrust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.