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. You may claim a charitable income tax deduction and may not have to pay any capital gains tax if the gift is of appreciated property. At the end of the trust term, Cru would receive whatever amount is left in the trust (Charitable remainder unitrusts provide you some flexibility in the distribution of income, and can be helpful in retirement planning).
While gifts of cash are the most typical method of giving, one popular alternative is a gift of appreciated assets through a Charitable Remainder Trust (CRT). 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.
- Considering a gift of only a portion of the asset, then using the charitable deduction associated with the gift portion of the asset to offset a major portion of the taxes associated with the sale of the retained portion of the asset.
- Providing a significant gift to Cru or your other favorite charities.
All charitable trusts are similar, but each trust serves a unique purpose. It is most important to determine what you want to accomplish prior to implementing the how. Cru Foundation can help.
Cru Foundation will serve as trustee, direct the investment of the trust assets, and oversee all legal, accounting and administrative matters, at no additional cost to you.
For a more complete introduction to the Charitable Remainder Trust, please contact our team at 800-449-5454 or info@crufoundation.org.