Example: If a donor creates a charitable remainder trust
and funds it with a piece of artwork, the donor may not take a charitable income tax deduction for the contribution to the charitable remainder trust
until the year the trustee sells the artwork.
If a client has been wavering about setting up a charitable remainder trust
(or other tax-exempt trust), this might be enough to push him over the edge.
As stated previously, charitable remainder trusts
are exempt from the Sec.
added, "The Real Estate Power Program ensures maximum tax benefits for donors and TERI, while also helping donors through the facilitation of charitable remainder trusts
All of these goals may be accomplished by having the individual create a charitable remainder trust
through which the property can be sold without incurring a taxable gain.
A charitable remainder trust
is a tax-exempt way to distribute income from the trust to beneficiaries for a period of time after which remaining assets are distributed to charities of your choice You determine the time frame of the trust--it can last a lifetime or for a fixed term of up to 20 years--as welt as the amount of annual payouts.
Spousal Election Rights and Charitable Remainder Trusts
Charitable remainder trusts
are typically used in conjunction with wealth replacement trusts.
Unfortunately, it did not extend the safe harbor rules to include charitable remainder trusts
LIKE MOST AMERICANS, donors to charitable remainder trusts
(CRTs) are concerned they may outlive their retirement nest egg.
While charitable lead trusts (CLTs) first make a stream of payments to one or more charitable beneficiaries, then leave remaining trust assets to non-charitable beneficiaries, charitable remainder trusts
(CRTs) do the opposite.
Look into options such as donor-advised funds, charitable remainder trusts
, and giving circles.