If you’re interested in giving and creating an income stream for retirement, consider a Charitable Remainder Trust (CRT). Benefits include:
- Fixed or variable income payments for you and/or your beneficiaries for life or a period of up to 20 years, at the end of which the Trust pays the remaining assets to Turning Point
- An immediate and substantial income tax charitable deduction (subject to limitations) for itemizers
- The potential to bypass current capital gains tax when you fund the Trust with long-term appreciated property
- A reduction of your assets, which can help minimize or avoid estate taxes
- A substantial reduction of probate costs, taxes, and other estate transfer expenses
The amount of the immediate income tax deduction depends on the:
- value of the property transferred to the Trust
- amount of income benefits that are payable each year to individual beneficiaries
- approximate length of time the income benefits will be paid
- prevailing interest rates at the time the gift is made
A CRT offers powerful tax and financial benefits, but it is a more complex gift that requires a larger gift amount and some ongoing expenses. Work with your advisors to determine if it is compatible with your overall estate, tax, and financial plan.
Contact us for more information about Charitable Remainder Trusts.