Charitable Remainder Trust
A Charitable Remainder Trust (CRT) is an arrangement under which a donor irrevocably sets aside property for ultimate distribution to a charitable organization like Plan International USA.
A CRT makes payments to whomever the donor designates to receive the income. Payments may be a fixed dollar amount each year — an Annuity Trust; or the beneficiary may receive a fixed percentage — a Unitrust. If the gift is in the form of appreciated property, the donor may eliminate a capital gains tax. The donor may reduce or eliminate estate and inheritance taxes, and may also claim a federal income tax deduction for a portion of the gift.
At the end of the trust period, the property remaining in the trust (the charitable remainder) becomes the property of the designated charity.
Charitable Lead Trust
A Charitable Lead Trust provides a gift of an income interest to a charity for specified term in either a fixed amount or a percentage of the trust principal. The trust principal reverts to the donor or other designated heirs at the end of the trust term. The donor may claim a charitable income tax deduction or a charitable gift tax deduction, depending on the nature of the trust.
Contact us toll free at 1-877-906-3567 to speak with a member of our Planned Giving team for more information on the benefits of creating a charitable trust.