| Charitable
Remainder Trusts
-- Meet Catherine
What
it is
A charitable
remainder annuity trust (CRAT) is set up to pay a fixed rate of
return based on the initial valuation of the assets in the trust
at the time the property is placed in the trust. A CRAT is an irrevocable
trust and the trust assets are never revalued. It differs from the
next scenario (charitable remainder unitrusts) in that the income
from the trust will not increase even if the value of the assets
increases dramatically.
A CRAT is useful
for donors who do not have a tolerance for risk and who want to
establish a fixed amount of income for their lives.
An example of
a charitable remainder
annuity trust is available. Some additional information on charitable
remainder trusts is also available.
How
it Works
Catherine
and George had been married for forty-seven years. Not long before
 he
died, George looked into a charitable remainder annuity trust. George
thought it might be a good idea to place some of their certificates
of deposit that were maturing and a condominium they had been renting
out that had belonged to Catherine's mother into a trust. He and
Catherine met with their advisors and found out it was a wonderful
idea.
Catherine:
We met with our tax man and looked at the idea. When I saw the
income we would have for the rest of both of our lives and compared
to what we had been receiving, I was amazed! Plus there were tax
benefits that helped us immediately. And now, I don't have to do
a thing or worry about taking care of the condo- it's all taken
care of.
The
development officer explained how they could use our support and
what it meant to them. It was something George and I did
together, and I'm happy; really happy we did it when we could
do it together!"
Perhaps
also it brought peace of mind to George knowing that Catherine would
be provided for in the future.
Now
click here to meet Sue and John>>>>
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