Charitable Remainder Trust A gift that can provide income and more

A charitable remainder trust begins with an irrrevocable gift of assets into a charitable trust that provides you or whomever you designate a fixed or variable income for life or for a set term. At the trusts termination, the trust assets become a generous gift to our mission.

There are two types of charitable remainder trusts:

Annuity trust: the income is predictable and fixed. When you establish your trust, you set a reasonable and permissible fixed annual income based on a percentage of at least 5% of the initial market value of the trust assets. Even as the value of the trust fluctuates, your income remains the same – except in the very unlikely and uncommon event that the trust assets are exhausted. Future additional contributions to the trust or not permitted.

Unitrust: the unitrusts income varies on an annual basis. At the establishment of the trust, a reasonable and permissible income percentage rate is determined. Annually, the trust assets are valued, and the established rate applied to the annual value determines your income. As the trust assets increase or decrease, your income increases or decreases as well. It may be possible to make additional contributions to the trust.

Benefits for you

  • Income: payments are distributed for life or for a fixed period to you or to whomever you designate.
  • Tax deductions: you may be eligible for a tax deduction the year the trust is established.
  • Capital gains: you may avoid upfront capital gains tax.
  • Estate tax: trust assets are not a part of your state.

And your gift support to future generations

After the lifetime of the income beneficiary(ies), the remainder of the trust assets are distributed as your generous gift. You are making our mission and vision possible for those who follow.

What is next?

  • Establish your charitable remainder unitrust or annuity trust, and choose your trustee.
  • Transfer your highly appreciated assets or real estate into the trust.
  • The trust sells the assets without creating a taxable event and reinvests in securities appropriate for the trust's goals.

Many facets of this gift require experienced guidance to be done properly and to space reach your maximum benefits. We hope that you will consult your professional advisors on how this gift might best suit you.

Broadmoor United Methodist Church, Shreveport Louisiana

Terry@BroadmoorUMC.org

Created By
Karl Mattison
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