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Charitable
Remainder
Trusts
--
Sue & John
What
it is
An Charitable
Remainder Trust (CRT) is a popular way to achieve tax benefits as
well as an income based on the value of the assets in the trust.
Usually, the grantor and/or the grantor's spouse will retain an
income interest in the assets of the trust for life. A charity has
the remainder interest; the principal remaining at the death of
all income beneficiaries goes to charity
A Charitable
Remainder Trust is established for the life of the donor (also trustor
or grantor) and/or for the life of any beneficiary(-ies) and is
irrevocable. Once established, it cannot be changed. If it is desired,
the income period of the trust can be established for a specified
period of time not to exceed twenty years. The twenty-year maximum
does not apply if the trust life is based on the life expectancy
of the income beneficiary(-ies).
How
it Works
There are two
different types of charitable remainder trusts.
A charitable
remainder unitrust is a popular way to achieve tax benefits as well
as a fixed annual percentage on the value of the assets in the trust.
The assets are revalued annually and, if the trust value changes,
the payment to the beneficiary(ies) changes.
A charitable
remainder annuity trust is set up to pay a fixed rate of return
based on the initial valuation at the time the property is placed
in the trust. The trust assets are never revalued. Examples
of a charitable
remainder annuity trust and a charitable
remainder unitrust are available. Some additional information
on charitable remainder trusts
is also available.
Sue and John
know what hard work is all about. And they have the rewards as a
result.
Sue: "I
was one of the lucky ones. Times were hard, but I got my education.
Did it make a difference? Only in every aspect of my life! I don't
know where I'd be today without my degree."
 John:
"We know how important an education is, and we know how difficult
it is for colleges and universities to develop the funding they
need. Facilities, endowment, hiring the best professors, scholarships
- it's all literally urgent."
Sue:
"We benefited from our college experience - now we can give back.
And what a joy it is to know that when we no longer need it, part
of it is going to someone who does. It's awesome - we are changing
lives!"
John:
"That's why Sue and I made the decision. Not
only will the trust provide income to us throughout our lifetimes,
but we have peace of mind knowing that the remainder will benefit
young people and the educational community as a whole."
Now
click here to meet Phil and Alice>>>> |
