Great benefits now, amazing future gift for ministry.
The Charitable Remainder Trust is a financial tool that makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to whomever you choose to receive the income. All charitable trusts are similar in structure but unique in purpose. Determining your “why?” before implementing the “how” is most important. Cru Foundation can help.
In certain situations, Cru Foundation can serve as trustee, direct the investment of the trust assets, and oversee all legal, accounting and administrative matters, at no additional cost to you. At the end of the trust term, your charitable gift is used to fund the Cru ministry or missionary work you designate, leaving a legacy in the kingdom of God.
Providing for your family. Funding ministry.
Both at once.
Many Christian families holding a significantly appreciated asset run into the same wall. Selling outright triggers a sizable capital gains tax. Giving it away in full removes income the family may still need. Holding it indefinitely defers the question without answering it.
The charitable remainder trust was built for this situation. It lets you transfer the asset into a trust, generate income from the proceeds for life, and direct what remains to ministry when the trust term ends. The capital gains exposure is reduced. The income continues. The kingdom gift is made.
It is not the right structure for every family. For some, it is exactly the right one.
Evaluate Your Goals
A charitable remainder trust should be seriously considered when your specific goals include:
Avoiding the capital gains taxes associated with the sale of an asset.
Converting low-income-producing assets into a larger lifetime income stream.
Moving an asset (discounted) and the associated income to another generation.
Partial gifts of an undivided interest in which the charitable tax deduction
from the gift portion will offset a major portion of the taxes on the sale of
the retained portion.
Providing a significant gift to Cru or your other favorite charities.
Families who pursue this kind of plan usually share four things.
- They are holding a significantly appreciated asset and have decided to part with it in some form.
- They want or need income from the proceeds, often for both spouses across their lifetimes.
- They have a clear ministry purpose in mind. The trust funds it at the end of the term.
- They are ready to make an irrevocable decision and want to make it carefully, with biblical counsel.
If those describe where your family is, a charitable remainder trust is worth a closer look.
How it works
To get started, we will guide you through determining your gift objectives. Once you’ve decided on a Charitable Remainder Trust, here is an overview of how it works:
Transfer property or undivided interest in a portion of the property to the trust.
Receive an immediate income tax charitable deduction and an income for the lifetime(s) of the income beneficiary(ies).
After the obligations of the trust to the income beneficiaries are fulfilled, the remaining principal will be distributed to your designated Cru ministry or missionary.
Trustee converts the assets to cash and reinvests proceeds to pay an annual income for the lifetime(s) of the income beneficiary(ies).
After the obligations of the trust to the income beneficiaries are fulfilled, the remaining principal will be distributed to your designated Cru ministry or missionary.
Determine financial, estate and gift objectives and an attorney drafts the trust(s).
Transfer property or undivided interest in a portion of the property to the trust(s)
Receive an immediate income tax charitable deduction.
Trustee converts the assets to cash and reinvests proceeds to pay an annual income for the lifetime(s) of the income beneficiary(ies).
After the obligations of the trust to the income beneficiaries are fulfilled, the remaining principal will be distributed to your designated Cru ministry or missionary.
Depending on the custodian, they will either send the QCD check directly to Cru, send the check to the IRA account holder but made payable to Cru, or they may provide the IRA account holder with a checkbook with which to make a QCD. Whichever method, please notify Cru of your gift and your desired intentions.
What Cru Foundation does from start to finish.
Start with your "why"
Before any structure, we listen to what your family is trying to accomplish — for your income, for your heirs, for the ministry purposes God has put on your heart.
Weigh the options together
A charitable remainder trust is one tool among several. We help you understand how it compares to a donor advised fund, a charitable gift annuity, or a direct gift, and which combination fits your family best.
Serve as trustee
In many situations, Cru Foundation can serve as trustee, direct the investment of the trust assets, and oversee the legal, accounting, and administrative matters at no additional cost.
Talk it through with a specialist.
A charitable remainder trust is a significant, irrevocable decision. It is worth a careful conversation before any paperwork is drafted. Schedule a no-obligation conversation with a Cru Foundation specialist. We will listen to your situation, walk you through your options, and help you understand whether a CRT fits your family. There is no pressure to move forward.
Fill out the form to get started.
You can also call (800) 449-5454 OR email us at hello@crufoundation.org
