Advantages of a Charitable Remainder Trust
If you have built a sizeable estate and also are looking for ways to receive reliable payments, consider a charitable remainder trust.
This type of gift offers you tax benefits and the option for income. There are two ways to receive payments and each has its own benefits:
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 the value of 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, however, so will your payments.
An Example of How It Works
John, 60, wants to make a gift to TPWF but would also like income in the future. John creates a charitable remainder unitrust with annual lifetime payments to his equal to 6 percent of the fair market value of the trust assets as revalued annually. He funds the trust with assets valued at $250,000.
John receives $15,000 in the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. He is eligible for a federal income tax charitable deduction of $81,305* in the year he creates and funds the trust. This deduction saves John $22,765 in his 28 percent tax bracket.
*Based on annual payments and a 2.4 percent charitable midterm federal rate. Deductions vary based on income earned.
Learn MoreChoose From 2 Win-Win Ways to Donate
- Contact Merrill Chester Gregg at 214.720.1478 or email@example.com to talk about supporting TPWF by setting up a charitable remainder trust.
- Seek the advice of your financial or legal advisor.
- If you include TPWF in your plans, please use our legal name and federal tax ID.
Legal Name: Parks and Wildlife Foundation of Texas (dba Texas Parks and Wildlife Foundation)
Address: 2914 Swiss Avenue, Dallas, TX 75204
Federal Tax ID Number: 74-2602504
- Please let us know if you include TPWF in your plans so that we can thank you and ensure that we fulfill any specific wishes you may have for your gift.
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.