Charitable Remainder Trusts

Friends of the CEC who would like to make a substantial gift but must also consider their own and their spouses' financial needs, may find a charitable remainder trust (CRT) to be an attractive solution. CRTs are life income plans that allow you to make a gift to the CEC and retain a benefit from the assets you give, in some cases making it possible to contribute more than you originally thought affordable. When you establish a CRT, you make an irrevocable gift of assets and in return receive payments for life or for a term of years. When the trust terminates, the assets remaining pass to the CEC.

CRTs offer a number of important potential benefits. Donors receive an immediate income tax charitable deduction for the value of the CEC's remainder interest in the trust while earning income for life (for themselves or for any designated beneficiaries). They may receive increased income in many cases from low-yield, appreciated securities. Donors likely eliminate capital gains tax liability if appreciated property is donated, while also reducing estate taxes. An added benefit to you would be the satisfaction of supporting the CEC during your lifetime. 

CRTs are separately managed irrevocable trusts that can be tailored to meet your financial goals, especially with respect to the payout rate, the length of the trust term, and the assets used to fund the trust. 

 

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