Using Charitable Remainder Trusts to Your Advantage

Would you be interested in presenting appreciated property or security to a charitable organization if it meant that you and your loved ones would benefit from interest income? This ideal situation is possible with the establishment of a charitable remainder trust.

Show Me the Benefits
The benefits of a charitable remainder trust begin with a current income tax deduction and the knowledge that you will not be responsible for paying any taxes to cover the transfer or appreciation of the property or security.

How Do I Receive Income from the Trust?
The process is quite simple. Normally, the trust finds a buyer interested in the asset and then reinvests the purchase amount in an outlet that produces income. Your role as a recipient of this income results from your willingness to gift the asset to the charitable entity.

Personalize Your Income Options
Income is provided on a fixed or percentage basis, but the decision is ultimately yours. Percentages rely on the present value of the trust. If the trust "underperforms" after twelve months, you may even receive an adjusted amount the following year to compensate for the "loss" in the prior year. A fixed amount is independent of the market, and does not experience the highs and lows.

Pick the Right Trustee for the Job
You definitely want to be specific when establishing your trust as well as employ a trustee who understands the financial arena, because a charitable remainder trust is irreversible upon its origination.

This information is presented to educate the reader and does not constitute professional tax and legal advice.

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