Trusts

Any questions regarding these types of donations should go to AotA Board member

Dave Eberly: dseberly63@gmail.com

Charitable Remainder Unitrusts

An irrevocable gift that may be funded with cash or appreciated assets (stocks, bonds, real estate, tangible personal property). Charitable Remainder Unitrust specifies that income beneficiary (recipient) is to receive annual payments determined by multiplying a fixed percentage (which cannot be less than 5%) by the net fair market value of the trust assets, as determined each year. On death of beneficiary (or survivor beneficiary, if more than one,) charity gets the remainder. Tax benefits include charitable income tax deduction, capital gains tax avoidance, and estate tax reduction.

Charitable Remainder Annuity Trusts

An irrevocable gift that may be funded with cash or appreciated assets (stocks, bonds, real estate, tangible personal property). Specifies a fixed dollar amount (at least 5% of initial fair market value of transferred property), which is to be paid annually to income beneficiary (recipient for life). On death of beneficiary (or survivor beneficiary, if more than one) charity gets the remainder. Tax benefits include charitable income tax deduction, capital gains tax avoidance, and estate tax reduction.

Charitable Lead Trusts

An irrevocable gift that may be funded with cash or appreciated assets (stocks, bonds, real estate, tangible personal property). Similar to charitable remainder trust, however, payments are made to charity for a life or a predetermined number of years. Remainder interest is paid to family members or other non-charity remainderpersons. Tax benefits include possible charitable income tax deduction and possible estate and gift tax reduction.