Charitable gift annuities are popular because they allow you to make a gift to the Trust in exchange for a guaranteed return of income, starting now or in the future. You can fund the annuity with different types of gifts, such as cash, stock or real estate. For receiving the gift, the Trust agrees to pay you a set payment for life based upon the size of the gift, the number and ages of the beneficiaries, the applicable interest rates, and the rates of return as established by the American Council on Gift Annuities.
You may be concerned about the high cost of capital gains on the sale of an appreciated property. Or, you might have recently sold property and are looking for a way to save on this year’s taxes. A charitable remainder unitrust can provide you with a solution. By placing the assets into a charitable remainder unitrust, you can bypass up to 100% of the capital gains tax while also reducing future estate taxes and receiving income for life, lives, or a term of years. While you receive income from the trust investment, a gift is made to the Trust at the end of the charitable remainder unitrust term.
A charitable lead trust allows you to support the Trust without permanently giving up any assets. Unlike many gifts where you receive income for a set period of time and the remainder of the asset passes to the charity, a charitable lead trust provides payments to the Trust for a set period of years with the asset either returning to you or your heirs. A charitable lead trust is ideal for someone who is financially comfortable and can forgo earnings from particular assets in exchange for continuing their philanthropy and receiving tax benefits.
When the assets return to you, it is a grantor charitable lead trust. If the assets are passed on to family members, it is a nongrantor charitable lead trust.