Charitable Trusts
Do More to Help Others by Letting Assets Grow Tax-Free
Looking for ways to give RMHC a significant gift? If you have built up a sizeable estate, you may want to check out the advantages of setting up a charitable trust. There are several types of trusts—the options allow you to tailor your gift to meet your personal, charitable and financial goals.
The charitable remainder annuity trust and charitable remainder unitrust let you or other named individuals receive income each year for life or a term of years from assets you give to the trust. After the life of the named individuals or the set period of years, the balance in the trust goes to the charities of your choice.
The charitable lead trust can make payments in one of two ways. A charitable lead annuity trust pays a fixed amount each year to our organization and is more attractive when interest rates are low. A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust.
Check Out This Potential Scenario
Susan, 75, wants to make a gift to RMHC but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 5% of the fair market value of the trust assets as revalued annually. She funds the trust with appreciated property valued at $500,000. Susan receives $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $290,360* in the year she creates and funds the trust. This deduction saves Susan $92,915 in her 32% tax bracket.
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Learn How to Fund It
You can use the following assets to fund a charitable trust:
Calculate Your Benefits
Submit a few details and see how a trust can benefit you.
Questions about ways to give through a planned gift?
Contact Lacee O’Brien at 630-623-7048 or lacee.obrien@us.mcd.com