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A charitable remainder trust is an irrevocable trust that allows you to
make a gift while at the same time receiving payments. There are two types
of Charitable Remainder Trusts The first type is a unitrust (CRUT). When
you make a gift, you receive a fixed percentage (which must be at least 5%
and not more than 50%) of the net fair market value of its assets, valued
annually, paid to you, or to you and additional people, for life. The
second type is an annuity trust (CRAT). The payments to you or to you and
additional people, are a fixed amount established at the time of the gift.
For both types, at the end of your life, the remainder of the CRUT or the
CRAT benefits the church and/or charity you choose.
Charitable Remainder Unitrust
Stock or Cash
Unitrust
Donor
UMFWV
Benefits of a charitable remainder trust
- Establish a future legacy gift for ministry
- Receive income for life, for a term of up to 20 years, or life plus a term of up to 20 years
- Avoid capital gains on the sale of your appreciated assets
- Receive an immediate charitable income tax deduction for the charitable portion of the trust
How a charitable remainder trust works
- You transfer cash or assets to fund a charitable remainder trust.
- In the case of a trust funded with appreciated assets, the trust will then sell the assets tax-free.
- The trust is invested to pay income to you or any other trust beneficiaries you select based on a life, lives, a term of up to 20 years, or a life plus a term of up to 20 years.
- You receive an income tax deduction in the year you transfer assets to the trust.
- The Foundation and the church you have selected benefit from what remains in the trust after all the trust payments have been made.
How a charitable remainder trust funds ministry
As part of the work we do with you and your attorney to establish the trust, we will together craft an Agreement with the Foundation that will provide us with instructions regarding the creation of an endowment to fund the ministry you choose with the residual of the trust after your death.
Contact us
If you have any questions about a charitable remainder trust, please contact us. We would be happy to assist you and answer any questions you might have.
Charitable remainder unitrust and annuity trusts. A charitable remainder unitrust pays you income that reflects the value of the trust's assets. Your income has the potential to increase over time as the trust grows in value. A charitable remainder annuity trust (CRAT) pays a fixed amount each year based on the value of the property at the time the trust is funded.
