Charitable Remainder Trusts

Charitable remainder trusts have become extremely popular because of the tax-planning advantages and flexibility of these life income gift plans. A charitable remainder trust can accept the transfer of an appreciated asset, eliminate any potential tax burdens for the donor, invest the proceeds from a tax-free sale of the assets, and use the investment income to provide an income for the donor.

A charitable remainder trust may provide an income for the lifetime of the beneficiary or for a term of up to 20 years. Minimum for a GFU charitable trust is $100,000.

Charitable remainder unitrusts are especially advantageous for appreciated assets and real estate. A unitrust provides a variable income based on a percentage of the value of the trust assets as determined each year. [Example]

Charitable remainder annuity trusts are excellent planning vehicles for older donors with appreciated stock. An annuity trust pays a fixed dollar amount each year to the income beneficiary. [Example]

Highlights

  • An income stream for lifetime or a term of years
  • Attractive rate of return
  • Charitable income, gift, or estate tax savings
  • Avoidance of capital gain tax on transfer of appreciated assets
  • May be established with gift of cash, securities, real estate, cash value of life insurance policy

For more information about charitable remainder trusts, please contact Dave Adrian by e-mail at dadrian@georgefox.edu or phone at 503-554-2113. Financial and tax deduction calculations, customized gift plan proposals and counsel are available at no charge or obligation.

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