Charitable Remainder Trust

Would you like to generate income for your family, lower your taxes, and donate to your favorite charity? Do all this with Charitable Remainder Trusts.

Charitable Remainder Trusts are irrevocable structures established by a donor to provide an income stream to the income beneficiary, while the public charity or private foundation receives the remainder value when the trust terminates.

The Trust makes its payments of either a fixed amount or a percentage of the Trust principal, to whomever the donor chooses to receive income.

Better still, the donor can claim a charitable income tax deduction. This means they won’t have to pay an immediate capital gains tax when the Trust disposes of the appreciated asset and purchases other property to diversify its trust property portfolio. Whatever is left at the end of the term goes to the charity.

Charitable trust funds come in two basic types:

• Remainder Trusts - Under a remainder trust, assets are signed over to a charitable organization for a specific period. This period can last for a few years or many years after the donor’s death. When this time ends, all the assets go to the charity as well as any interest of profits.
• Lead Trusts – Rather than giving control of one’s assets over to a charity, the donor maintains control. If any interest accrues, it either goes directly to the charity or is split between the charity and the donor’s beneficiaries. At the end of the agreed upon time, the assets revert to the charity or beneficiary of their choosing.

Forming a charitable trust can be an effective strategy for planning for retirement. Interested in learning more about a Charitable Remainder Trust? Give NCH a call at 1-800-508-1729.

*Legal Disclaimer – Nevada Corporate Headquarters, Inc. has prepared the content of this website for informational purposes only. It is not legal advice. An in-house independent Nevada law firm provides our legal services.*