Charitable Remainder Trust

A charitable remainder trust can be tailored to accommodate a wide variety of gift assets and to meet your personal financial and philanthropic goals. Charitable remainder trusts may offer you a number of important benefits:

• An income tax charitable deduction

• Increased spendable income

• No capital gains tax when appreciated property is transferred to the trust

• Reduction of your taxable estate

• Provides for the longterm support of the ACLU

To establish a charitable remainder trust (CRT), you make an irrevocable contribution of cash, securities, or other property to a trustee of your choice and designate a person or persons who will receive income (you may be one of them.) The income beneficiaries designated by you may receive the income generated by the trust for a term not to exceed twenty years or for life.  When the specified time of payments has concluded, the appointed trustee pays the principal to the ACLU Foundation.

There are two basic types of Charitable Remainder Trusts:

Charitable Remainder Unitrust
A unitrust provides a fluctuating annual payment based on a percentage of the trust’s assets as revalued each year. If the unitrust’s assets grow over time, the beneficiaries will receive a larger annual payment.

Charitable Remainder Annuity Trust
An annuity trust pays a fixed dollar amount each year, regardless of how the investments perform. The annuity trust provides the donor with the most secure income, as each payment is always the same.

Income Tax Benefits
When you make a gift to establish a CRT, you are entitled to an immediate income tax charitable deduction for a portion of the value of the donated assets. The size of the deduction is based on the projected value of the ultimate gift to the ACLU Foundation from the trust.  For more information on charitable remainder trusts and projected figures based on your particular situation contact us.