Charitable remainder trusts (CRTs) are an effective way to plan your financial future and leave a legacy for liberty. With a CRT, you transfer cash, securities, or other assets to a trust, which then pays you or your designated beneficiary an income stream for life or for a term up to 20 years. When the trust terminates, the remaining principal passes to IHS.
There are two types of CRTs:
A Charitable Remainder Unitrust trust pays one or more beneficiaries a fixed percentage (at least 5%) of the annual fair market value of the trust’s assets. Payments may vary from year to year, since they are based on the changing value of the assets.
A Charitable Remainder Annuity Trust pays the beneficiaries a fixed dollar amount annually (at least 5%). Payments do not fluctuate from year to year.
Both kinds of CRT enable you to take an income-tax deduction at the time the trust is established and to avoid capital gains taxes on appreciated assets. In addition, you reduce the size of your estate. Since the charitable trust is tax-exempt, it does not pay capital gains taxes on the sale of contributed assets, and earnings in the trust accumulate tax-free.
A charitable remainder trust is thus a very tax-efficient way of giving, providing you immediate benefits and making a long-term commitment to support our work at IHS to advance liberty now and for future generations.