Charitable Remainder Trusts
Discover a Gift That Is Truly Win-Win
If you have sizeable estate and are also looking for ways to receive reliable payments or reduce taxable income, you may want to consider setting up a charitable remainder trust.
A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust which you create. It reduces the taxable income of individuals by first dispersing income to the beneficiaries of the trust for a specified period of time and then donating the remainder of the trust to the designated charity.
Benefits of a charitable remainder trust include:
- A partial charitable income tax deduction
- Potential for increased income
- Up-front capital gains tax avoidance
There are two ways to receive payments with charitable remainder trusts:
- The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
- The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, so will your payments.
The most common ways to fund a bequest is through cash, personal property, closely held stock, real estate, and appreciated securities.
For additional information on Charitable Remainder Trusts or other planned giving options, please contact SFIC 973-497-4279.
If you name The Scholarship Fund for Inner-City Children in your plans, please use our legal name and federal tax ID.
Legal Name: The Scholarship Fund for Inner-City Children
Address: 171 Clifton Avenue, PO Box 9500 Newark, NJ 07104-0500
Federal Tax ID Number: 51-0546401