Charitable Remainder Trust
A Charitable Remainder Trust (CRT) was created to convert individual’s highly appreciated assets into a family’s lifetime income stream. If you sell the appreciated assets you would have to pay significant estate and capital gains taxes but instead if you establish a CRT, you can generate an income that would benefit you and your family for a lifetime and also support your philanthropic ideals. The benefits of CRT are:
- Avoiding immediate capital gains taxes as a result of selling the appreciated assets.
- Reduce estate taxes that your heirs might have to pay.
- Reduce current income taxes.
- Valuable tax advantaged investment that generates lifetime income for you and your family.
- Create a significant charitable gift.
The amount of income paid out each year for period of time depends on whether it is a charitable remainder annuity trust or a charitable remainder unitrust.
- Charitable Remainder Annuity Trust: Your trust pays a fixed dollar amount each year to you or others you name for life or a term of years. The remaining assets then go to Warm Blankets Orphan Care.
- Charitable Remainder Unitrust: Your unitrust pays a fixed percentage of its value, determined each year, to you or others you name for life or a term of years. The remaining assets then go to Warm Blankets Orphan Care.
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