With a charitable remainder trust, you can receive income each year for the rest of your life based on the assets in the trust that you create. After your death, the balance in the trust benefits your designated charities.
Your possible benefits
- A partial charitable income tax reduction.
- Potential for increased income.
- Up-front capital gains tax avoidance.
- The opportunity for professional management of trust assets.
Choose between two main types
- An annuity trust pays you, each year, the same dollar amount you choose when the trust is created. The payments stay the same regardless of fluctuations in trust investments.
- A unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assests, determined annually. If the value of the trust increases, so do your payments. However, if the value of the trust decreases, your payments will decrease as well.