Charitable Remainder Annuity Trust: The Details
Is this gift right for you?
A charitable remainder annuity trust is for you if…
- You want to make a major gift to the Foundation while retaining or increasing your income from the assets you contribute.
- You hold appreciated stocks or bonds and want to avoid the capital gains cost of a sale.
- You prefer the stability of a fixed income.
A charitable remainder annuity trust is a separately invested and managed charitable trust that pays you, and/or other beneficiaries, a fixed annuity for life or for a term of years (up to 20). You receive a charitable income tax deduction for a portion of the value of the assets you place in the trust. By law no additional gifts to the trust are permitted once the trust is initially funded. After the annuity trust terminates the balance or "remainder interest" goes to Marine Corps Heritage Foundation to be used as you designate.
Planning Points
With an annuity trust you can:
- Receive stable, predictable income equal to no less than 5% of the original gift.
- Avoid all upfront capital gains tax on any appreciated assets you contribute to the annuity trust.
- Receive income that may be taxed favorably.
- Reduce your estate tax liability.
Please contact us so that we can assist you through every step of the process.
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Planning your estate and legacy for future generations, including your charitable interests, takes careful evaluation. Consulting with the appropriate professionals can assist you.
