Charitable Remainder Trusts

Charitable Remainder Trusts are flexible estate planning vehicles that allow you to make a charitable gift but retain an income stream (for yourself and/or others) for life or a fixed number of years.

These tax-exempt trusts are particularly well suited for gifts of cash and appreciated securities or other assets such as real estate or securities producing little or no income. Because the trust is tax-exempt, it can sell the asset without incurring capital gains tax and reinvest for higher yield. This flexible gift planning strategy is best suited for gifts of $500,000 or more, and can be established during life or by will.

If the San Angelo Area Foundation serves as trustee on your behalf, you can direct the charitable remainder to any qualified 501(c)(3) charity you choose, through an endowed fund at the Foundation. You can also create a fund with the Foundation to focus on a varitey of interests or the Foundation's Discretionary Fund.  The fund may be named for an individual, family or cause.

There are two general types of charitable remainder trust.

  • With a charitable remainder unitrust, you receive a fixed percentage (minimum 5%) of the trust's assets each year.
  • With a charitable remainder annuity trust, you receive a fixed dollar amount each year, which is determined at the time the trust is funded.



Benefits

With a charitable remainder trust, you will:

 

receive an immediate income tax charitable deduction in the year the gift is made

 

receive an income stream that may be larger than the net earnings you have been receiving

 

avoid capital gains when making a gift of appreciated securities

       

make a generous gift to a charity through the San Angelo Area Foundation

 

benefit from expert trust management provided by experienced professionals

 

reduce estate tax liability

To discuss planned giving options and possible benefits, receive sample gift calculations or arrange a confidential consultation, please contact President and CEO, Matt Lewis at 325-947-7071.