Planning for the future – for you and your community.
Under the right circumstances, creating a Charitable Remainder Trust can increase your income, reduce your taxes, unlock appreciated investments and help eliminate investment worries. Giving through a Charitable Remainder Trust allows you to receive income for the rest of your life, knowing that your gift will benefit your community.
Some advantages include:
- Immediate tax deduction
- No probate or estate taxes
- Fixed income or an annual percentage payout to the donor
You can place cash or property in a trust that pays annual income to you (or another named beneficiary) for life. After your death, the remainder of the trust transfers to Legacy Endowment as a “named fund” benefiting one or more causes you have selected. You receive income tax benefits the year you establish your trust AND POSSIBLY LONGER.
How it works
- You transfer cash, appreciated stocks, real estate, or other assets into a trust.
- You receive an immediate charitable tax deduction for the charitable portion of your trust.
- The trust pays you or a beneficiary you designate regular income payments.
- Upon the beneficiary’s death or after a defined period of years, the remaining assets in the trust transfer to Legacy Endowment.
- We set up a fund in your name, in the name of your family or in honor of any person or organization you choose.
- We handle all the administrative details after the fund is established, issuing grant awards to charities in the name of the fund.
- Your gift is placed in an endowment that is invested over time. Earnings from your fund are used to make grants addressing community needs. Your gift – and all future earnings from your gift – is a permanent source of community capital, helping to do good work forever.
More Benefits
You may choose to receive a fixed income or one that changes with market conditions – income from the charitable remainder trust you establish may add up to more than the interest and dividends you earned from holding the assets. You can use it to supplement your own lifestyle or that of someone other than yourself: a sibling, a dependent parent, or a friend. You can pick one of these options for your charitable remainder trust:
For example: creating a Charitable Remainder Trust with a gift of stock:
In his late seventies and after a long, satisfying business career, Jon Smith just retired. He was now thinking about the stocks he owns which have high market values, but they pay limited dividends. Beyond wanting to increase his income for his retirement years, Jon was also interested in giving back to the community in which he had lived his entire life, so he decided to transfer the securities into a Charitable Remainder Trust that eventually would create a fund in his name.
Jon was pleased to learn the income he would receive from the Charitable Remainder Trtus would be more than his annual stock dividends by thousands of dollars. If he had chosen to sell the stocks, he would have paid significant capital gains taxes. This way, Jon receives an immediate charitable tax deduction and pays less tax on trust distributions. In time, after his passing, the remainder amount in the CRT will fund a permanent endowment to his church, favorite charities, and the ever-changing needs of his beloved community.
Talk to us about gifts to create Charitable Remainder Trusts:
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We recommend that donors consult their professional advisor before considering the establishment of a Charitable Remainder Trust (CRT) to fully assess their financial outlook and benefits associated with this planned giving tool.