Charitable trusts are part of the family of charitable gifts that pay an income. These specialized trusts hold and invest assets that you contribute. They then pay an annual income to you and others you name.
Charitable Remainder Trusts
A Charitable Remainder Trust allows you to provide income to yourself and/or others while making a generous gift to charities of your choice. When you first create a Charitable Remainder Trust, you will receive an income tax deduction and avoid capital gains tax on the appreciated assets you placed in the trust. When the trust ends, the funds remaining in the trust will be paid to charities you have named.
Catholic Relief Services, one of the most efficient charitable organizations in the world, is the beneficiary of numerous charitable trusts.
Charitable Remainder Trusts come in two forms:
- Charitable Remainder Annuity Trust, which makes fixed annual payments to you or one or more beneficiaries you name.
- Charitable Remainder Unitrust, which makes variable annual payments to you or one or more beneficiaries you name; the payment amount varies because the unitrust portfolio changes from year to year.
When creating your Charitable Remainder Trust, please seek the advice and counsel of an experienced estate planner and the financial services of an investment bank or trust company.
I'd Like to Learn More
We're here to help you explore establishing a legacy gift in the form of a Charitable Remainder Trust. If you're interested in a Charitable Lead Trust, we can provide you with more information. Contact CRS Planned Giving:
Richard Balmadier, Director of Planned Giving
Phone: 1-888-277-7575; at the prompt, dial extension 7251