Trusts

Charitable Remainder Annuity Trust
Charitable Remainder Unitrust

Both of these plans are irrevocable trusts that feature income based on the value of the property given. An annuity trust pays a fixed income based on the value of assets at the time the trust is created, while the unitrust provides a fluctuating income based on a fixed percentage of the trusts annual value.

When the trust is created, capital gains tax can be avoided or postponed, and an income tax deduction is available for a portion of the value of the property. Income from the charitable remainder trust may be taxed favorably under lower capital gains tax rates.

There can also be estate tax benefits.

Revocable Trust

Just as in the case of a gift by will, through the use of a revocable living trust you can provide for eventual gifts of cash, real estate or other property, knowing that all or part of the assets may be returned upon request during your lifetime.

Since the property may be returned if needed later, there are no tax advantages. However, you have arranged a charitable gift without risk to your financial future.

Title to the property passes under the terms of the trust agreement. It does not pass through your will and may avoid the possible costs and delays of probate. Property passing to charity is free from the possible burden of estate taxes.

The income from the trust during your lifetime will be paid to you, another person, or a charitable organization, as you direct.

Charitable Lead Trust

You may create a trust to provide income for charitable purposes for a period of time you determine: for example, 5, 10, 15, 20 years or more. Through the use of the charitable lead trust, it can be possible to transfer assets to heirs with little or no estate and gift taxes due.