Charitable Trusts:
An excellent way to reduce taxes. |
| Have you ever heard the phrase, "giving away the tree while keeping the fruit?" This
is the best way to define a charitable remainder trust. It's a plan that promises
you life income (you keep the fruit) from the assets you irrevocably put in trust
now (give away the tree) for future charitable needs. This form of gift is often
the first choice of donors who want their support to have the greatest long-term
benefit. |
You also gain many financial advantages from a charitable remainder trust: |
An immediate federal income tax deduction
No capital gains tax when you give appreciated securities or property
You can save on estate taxes without paying a gift tax
You can actually increase your income depending on the yield.
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You decide how much you'd like to put into the trust, the amount of income you'd like to receive from the donated assets and whether you want the income amount or the income percentage to remain constant each year. |
This last choice introduces the two basic charitable remainder trusts: |
The annuity trust, which pays you, year after year, the same dollar amount you choose at the start, regardless of fluctuations in trust investments.
The unitrust, which pays you, each year, a fixed percentage of the fair market value of the trust assets, redetermined annually (allowing your income to possibly increase and keep up with inflation, or possibly decrease). |
After your lifetime, the trust income can, if you wish, continue for someone else's lifetime benefit before the remaining principal is given to us for charitable purposes.
Besides your own financial security, your greatest reward is the enduring satisfaction of a major commitment to Braille Institute's mission. |
| For further information about the benefits of planned giving contact our Planned Giving office. |
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| Related Links |
| A Charitable Trust: An Excellent Way to Reduce Taxes |
| Making Tough Financial Decisions Doesn't Have to Be Difficult |
Now Is a Good Time to Plan for the Future |
