Charitable Remainder Trusts

Charitable Remainder Unitrusts – are a ‘split interest’ trust that pays income to family members and after all of the income payments have been completed according to the trust, the remainder is distributed to qualified charities.  The person who establishes the Unitrust may select the percentage payment (ranging from 5 % to 7%), which is used to calculate annual income by multiplying it times the trust’s market value at January 1.  The annual income may go up or down depending on the market value of the Unitrust.  A Unitrust funded with appreciated assets such as securities or real estate, avoids paying tax on the capital gain.  The benefits of the trust are (1) the by-pass of capital gains (2) increased income, and (3) a charitable income tax deduction.

Charitable Remainder Annuity Trusts – are also a ‘split interest’ trust that pays income to family members, and after all of the income payments have been completed, the remainder is distributed to qualified charities.  The individual that establishes the Annuity Trust selects an annuity amount or percentage of the initial fair market value of the trust assets.  This dollar amount becomes a fixed income payment to the individual each year so long as funds remain in the trust.  The tax advantages are the same as a Unitrust.

For more information:

• Charitable Remainder Trusts Defined

• Charitable Remainder Trusts Policy PDF (31k)

• View the BIC Ministries Directory PDF (5.6mb)

• Estate Planning and Wills

• Contact Us at (717) 796-4788

Last Modified on November 11, 2009 | Brethren in Christ Foundation, Inc. All rights reserved.