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Charitable Remainder Trusts
Susan and Fred know what hard work
is all about. And they have the rewards as a result.
Susan: "We may not have had all the things that other families
had when we were growing up, but it helped us become who we are today."
 Fred: "We know how important help is when it is needed, and
we know how difficult it is for them to maintain their facilities, keep
their equipment up-to-date, and get volunteers trained and organized."
Susan: "We benefited because they had been supported by others
before us - but now we can give back. And what a joy it is to know that
when we no longer need it, part of it is going to someone who does."
Fred:
"That's why Susan and I made the decision. Not only will the
trust provide income to us throughout our lifetimes, but we have peace of mind
knowing that the remainder will benefit an organization that's doing really good
work." There are two different types of charitable remainder trusts.
A charitable remainder unitrust (see example)
is a popular way to achieve tax benefits as well as a fixed annual percentage
on the value of the assets in the trust. The assets are revalued annually and,
if the trust value changes, the payment to the beneficiary(ies) changes. A
charitable remainder annuity trust is set up to pay a fixed rate of return based
on the initial valuation at the time the property is placed in the trust. The
trust assets are never revalued.
Some additional information
on charitable remainder trusts is also available. Charitable Remainder
Trusts provide a good degree of flexibility that is valuable in charitable
gift planning. For example, a variation
on remainder trusts can be an effective way to make gifts of real estate.
A graphic
example of a charitable remainder trust is available.
Susan and Fred are happy that they have made a difference; a difference that will
have a profound impact on the lives of others.
Now click here to meet Phil and Alicia.
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