Charitable Remainder Trust
A charitable remainder trust is a separately managed trust that can be tailored to accommodate a wide variety of gift assets. In addition to providing high-impact support for the ACLU Foundation of Northern California, a charitable remainder trust offers valuable benefits to you:
- An immediate income tax charitable deduction (based on the projected value of the ultimate gift to the ACLU-NC)
- Increased spendable income
- No capital gains tax when appreciated property is transferred to the trust
- Reduction of your taxable estate
To establish a charitable remainder trust, you make an irrevocable contribution of cash, securities, or other property to a trustee of your choice. You designate a person (or persons) who will receive income (you may be one of them). The designated income beneficiaries 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 of Northern California.
There are two basic types of charitable remainder trusts:
A charitable remainder unitrust provides a fluctuating annual payment based on a percentage of the trust’s assets as revalued each year. If the assets grow, the beneficiaries will receive a larger annual payment.
A charitable remainder annuity trust pays a fixed dollar amount each year, regardless of how the investments perform. This arrangement ensures stable income to the designated income beneficiary.
For more information on charitable remainder trusts and for projected figures based on your particular situation, email rnakatani@aclunc.org.
