Charitable Lead Trust
Rather than distributing lifetime income to the donor, the Charitable Lead Trust provides income to the Chapter for a specified period. After that time, the principal passes to the donor or the donor's beneficiaries, such as children or grandchildren. A Charitable Lead Trust can provide income to the Chapter and also save estate or gift taxes, as well as generation-skipping transfer taxes. It is an excellent way for a donor to transfer substantial assets to younger generations at values reduced from their present estate-taxable value.
Charitable Remainder Trust
A Charitable Remainder Trust (CRT) is a gift trust to the National Multiple Sclerosis Society's Ohio Buckeye Chapter. The trust income is paid to beneficiaries for their lifetime or for a term of up to 20 years. After that time, the principal is paid to charity. You may tailor the annual income from the trust to be a fixed amount or a percentage of the principal's value. You may also decide the payout rate you want to receive as long as there is an actuarial probability that at least 10% of the principal will be left for charity at the time of your death.
There are two types of charitable remainder trusts:
Unitrust: Income fluctuates annually with the fair market value of the trust.
Annuity Trust: Income payments are fixed and determined when the gift is made.
Advantages of a Charitable Remainder Trust:
You receive income for life.
You avoid capital gains tax if trust funded with appreciated securities.
You receive immediate charitable income tax deduction.
You receive the possibility of reducing your estate taxes
For more information, contact Janet Kramer at 800-344-4867.