Charitable Remainder Trusts
This is the “premier” life-income plan because of its flexibility. With this type of gift you are free to choose:
- the rate of income you need betwee 5 % and 7%,
- whether your payment is to be fixed or variable,
- the beneficiaries you want to receive the income (including yourself),
- how long your trust will last,
- how to designate the remainder by Campbell at the end of your trust’s term,
- from cash, stocks, bonds, mutual funds, or marketable real estate for funding your trust.
Features of this gift plan include:
- Income for life – you receive a payment, either monthly, quarterly, or annually, in an amount equal to either a fixed percentage of your initial contribution to your trust, or a fixed percentage of the annual value of your trust, rates ranging from 5% to 7%, paid to you for the rest of your life, or just for a term of years if that’s your preference.
- Multiple beneficiaries – you may choose one, two, or three or more income beneficiaries under this plan – you; or you and your spouse; or you, your spouse, and your children; and so on.
- Control – you can specify in the trust document how the remainder of your trust’s assets are to be used at the end of the trust’s term.
- Income tax savings – you receive a sizeable income tax charitable deduction which you can use in the year you make your gift to your trust, and for five more years until it’s exhausted.
- No reduction for capital gains tax – as a tax-exempt organization, Campbell will pay no capital gains tax if it sells the assets gifted, so the assets you use to fund your trust are valued at full market value.
- Tax-favored payments – if you gift appreciated assets to your trust, a significant portion of the trust payments made to you will be taxable at the lower capital gains rate.
- Funding options – fund your trust with cash, stocks, bonds, mutual funds, or marketable real estate, having a value of $25,000 or more. PLANNING NOTE: If your investments have a concentration in, let’s say, one particular highly appreciated common stock, then this gift plan is a great way to achieve diversification and receive income – without taking a “hit” from capital gains taxes!
Let us mail or email you our Campbell Planned Giving Tools flyer entitled “What is a Charitable Remainder Trust?”