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Charitable Remainder Trusts
A community foundation like ours can administer charitable remainder unitrusts and annuity trusts, both of which pay lifetime income to you or other named beneficiaries.
Establishing a trust is simple. Cash or property is transferred to the trust. The income beneficiaries receive annually an amount equal to a fixed percentage of the trust's fair market value (unitrust) or a fixed dollar amount (annuity trust). Upon termination of the trust, the assets are transferred to your named charitable fund to support your individual or personal charitable giving goals.
Charitable Lead Trusts
You have a sizeable estate and are trying to plan for the future. You are able to provide amply for your children even though estate taxes will be considerable. But, now you are concerned about the welfare of your grandchildren. Will much be left after the taxes on your children’s estates?
You set up a Charitable Lead Trust. You donate part of your estate to the trust now, and the income goes to the Community Foundation’s General Endowment Fund, or to a named fund for a designated number of years. Your estate taxes are reduced and the donated property is not taxed to your children.
When your grandchildren reach maturity, the trust terminates and the assets are used for their benefit. You have contributed to charity during all those years, the trust has grown tax-free, and now your grandchildren will receive much more than they would have otherwise.
If you have questions about life income plans that have not been answered in this section, please click here to Contact Us for more information.
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