Gifts That Pay Income
Charitable Remainder Trusts
A Charitable Remainder Trust (a CRUT or CRAT) is created when you transfer cash or property to the trust. You or a designated person annually receive an amount equal to a fixed percentage or dollar amount of the trust’s fair market value. Upon termination of the trust, the assets are transferred to a charitable fund at the Community Foundations to support your charitable giving goals, either specific organizations or broader areas of interest that you designate in the original trust agreement.
Charitable Lead Trusts
A charitable lead trust will appeal to those who want to leave an inheritance for children and grandchildren while minimizing estate and other inheritance taxes. Cash or property is transferred to a trust. A percentage of the trust’s value is paid to a charitable fund at the Community Foundations that benefits the issues or organizations you care about most for a designated number of years. At the end of the trust term, the trust’s assets can either return to you or be given to another party (typically children or grandchildren). Although there is no income tax deduction when you create a charitable lead trust, your gift or estate tax is reduced and any growth is passed to your heirs gift and estate tax free. At the same time, you fulfill your charitable goals.
Although we do not create trust agreements, if you are not already working with an attorney or other professional, we would be happy to recommend some qualified, local professionals. Contact us here