Give and Gain

Charitable trusts are legal entities that make charity possible, even in impossible circumstances. These giving tools come in two forms — charitable lead trusts and charitable remainder trusts. Both give to the causes you love, while also providing gains for you or your loved ones. Charitable lead trusts do so by generating income for your charity of choice over a set number of years; after which, you or your loved one regain ownership of the assets. A charitable remainder trust flips this process by providing you or a loved one with annual income for a period of years or your lifetime. At the lapse of this time frame what remains in the trust is transferred to support the mission of your favorite charity.

Fast Facts : Charitable Trusts

Are the annual payments always the same?
That depends on how the trust is structured. When created, you decide the amount and timing of the trust payments. They can be fixed or a percentage of the total value of the trust assets.
How can I set up a charitable trust?
Charitable trusts should be established with the assistance of one or more advisors. Trust documents should be prepared by attorneys in consultation with those who will serve as trustee.
Who manages the assets in a trust?
Assets placed in charitable trusts are managed by a trustee of your choosing. Often times, donors choose to appoint the Community Foundation or a professional advisor as trustee.
What tax benefits accompany chartiable trusts?
Trusts can be structured in a number of ways to meet your tax goals. You can receive an immediate charitable deduction and possibly reduce your current income, capital gains, gift or estate taxes, now and in the future.
What assets should a donor use to establish a charitable trust?
Highly appreciating assets are generally ideal for establishing your trust, but you may also use cash or other assets to establish your trust.
What is the minimum age and minimum amount for a charitable trust?
The minimum age for a gift annuity is 65. The minimum gift amount is $10,000. However, donors who are at least 55 years old may use a plan called the deferred charitable gift annuity.