Total distributions for charitable remainder trusts
are calculated as the sum of distributions from each income source.
Charitable lead trusts are, in some ways, the reverse of charitable remainder trusts
Charitable remainder trusts
allow an individual to donate an asset to a charity and then generate a fixed or variable rate annuity on the value of that donation.
For more information on the allowable duration of charitable remainder trusts
, see Internal Revenue Code sections 664(d)(1)(A) and 664(d)(2)(A).
This installment also examines the application of the exemption for annuity contracts to traditional estate planning arrangements such as charitable remainder trusts
, grantor retained interest trusts and third-party, non-self-settled trusts.
Eric King, a Trust and Estate Consultant with The MassMutual Trust Company, FSB, a wholly-owned subsidiary of MassMutual, says the use of a Charitable Remainder Trust
in combination with a Special Needs Trust is actually quite common because "the only possible non-person recipient of a Charitable Remainder Trust
income stream is a Special Needs Trust.
In Dallas, the Baylor Health Care System Foundation also avoids the pooled income funds in favor of charitable remainder trusts
and charitable lead trusts.
The charitable remainder trust
is a huge opportunity to shelter low-cost basis assets from huge capital gains (taxes) and remove those assets from estate tax analysis.
Among the more popular are permutations of two traditional charitable donation plans: the charitable remainder trust
and the charitable lead trust.
They were also setting up a charitable remainder trust
, and helping AU supporters to include us as a beneficiary in their future financial plans.
THE CHARITABLE REMAINDER TRUST
ALLOWS YOU TO DO THE FOLLOWING: ELIMINATE THE TAXABLE CAPITAL GAIN ON THE ASSETS, ELIMINATE FUTURE PROBATE FEES, REDUCE THE AMOUNT OF TAX YOU PAY IN THE CURRENT YEAR, CONTINUE TO RECEIVE THE INCOME FROM THE ASSET FOR THE REST OF YOUR LIFE, AND LEAVE A GIFT TO THE HEALTH SCIENCES CENTRE FOUNDATION UPON YOUR DEATH.
The concept behind a charitable remainder trust
is to avoid both income and estate taxes, while benefitting a charitable organization.