• Probate and administrative costs are reduced.
• The grantor receives a charitable income tax deduction equal to the present value of the charity's remainder interest. For transfers after July 28, 1997, the value of the charitable interest must be worth at least 10% of the value of the property contributed to the trust.
• The donor receives a charitable estate tax deduction at death equal to the value of the interest given to the charity.
• Since the asset is usually sold by the charity, the donor avoids capital gains taxes upon sale of the asset.
• The donor receives an income flow (minimum 5% and maximum 50%) that is stated in the trust agreement.
• Estate taxes are reduced.
• The donor has lifetime satisfaction by knowing that the property in trust eventually passes to the designated charity upon death.
• Life Insurance can be used to replace the wealth transferred to the charity during the grantor's lifetime.

Charitable Remainder Trust (Definition) | Charitable Remainder Unitrust | Charitable Remainder Trust Calculator | Charitable Remainder Annuity Trust | Charitable Remainder Trust (Illustration)

 

 

---

© 2006 Impact Technologies Group, Inc. All Rights Reserved.