For our Professional Advisors
A Charitable Remainder Trust is a gift vehicle that provides a stream of income for a donor’s lifetime or for a period of years. There are two basic variations of a Charitable Remainder Trust
A Charitable Remainder Unitrust is designed to pay an annual income to one or more non-charitable beneficiaries for a term of years or for the lives of those individuals in an amount equal to a fixed percentage of the value of trust assets. The amount of each payment to the beneficiaries will vary based on fluctuations in the value of the trust as determined on an annual basis. Upon the death of the last surviving beneficiary, the assets of the trust are transferred to the charitable organization in the name of the trust. The payout rate is set at a minimum of 5 per cent.
Charitable Remainder Annuity Trust pays an annual income to one or more non-charitable beneficiaries with a fixed dollar amount, not less than five per cent of the initial fair market value of the property placed in trust, which will not fluctuate with the value of the trust. The payout is determined at the creation of the trust and cannot be changed. The payout rate is set at a minimum of 5 per cent.
- Rely upon a consistent or variable income stream for life or for a period of years.
- Can fund the Trust with cash or appreciated property including real estate.
- The name of the fund may be shared directly with the recipient ministry if the donor desires.
- Knowledge that the fund will be used for the purpose directed by the donor under the management of the Foundation Board of Directors regardless of personnel changes within the ministry.
- Additional contributions may be made to the Fund at any time by the donor. (Unitrust only.)
- Contributions of appreciated property may be particularly attractive by avoid most or all capital gains on the asset which claiming a charitable deduction on the amount of your Fund deposit.