Charitable Remainder Trusts

Charitable Remainder Trusts

A charitable remainder trust can be used to help you make a gift to The Fellowship while also providing you with a charitable deduction, income for life or for a period of years, and reduction or elimination of capital gains and estate taxes.

These types of trusts are very flexible because you, as the donor, have many options in selecting how the trust is structured. You decide who the income beneficiaries will be—typically the beneficiary would be you but may also include your spouse, other family members or other individuals. You also decide the trust payout—that is, what rate of interest the trust will pay (it must be at least 5%.) After the named beneficiaries’ lifetimes, or after the number of years you’ve specified passes, the trust “remainder” then goes to the work of The Fellowship.

One of the most attractive features of the charitable remainder trust is the ability to avoid any upfront payment of capital gains. If you have a highly appreciated asset like stock or real estate, you might have been reluctant to sell because of the unfavorable taxes that would be triggered by a sale. But if transferred to a charitable remainder trust, those assets can be sold by the trust without incurring any tax. And, the trust then pays you (and/or the beneficiaries you’ve named) an income which may be higher than you were receiving from the asset prior to sale.

A charitable remainder trust may be set up in one of several different ways, and is most cost-efficient when you have an asset valued at $100,000 or more. Use our online planning tools to see if a charitable remainder trust may be right for you.

The benefits

  • An income stream for the donor and/or named beneficiaries
  • Reduction or elimination of estate and gift taxes
  • A generation federal income tax charitable deduction
  • A legacy gift to benefit the work of The Fellowship

May we help you?

If you have questions, please contact The Fellowship’s Planned Giving Department by email or by phone at (888) 588-4325.

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