Charitable Remainder Trust
What Is a Charitable Remainder Trust?
A charitable remainder trust (CRT) is established when you transfer assets (cash or appreciated assets) to the trustee named in the trust agreement. Your trustee invests the assets for the term of the trust, which can be for the life of the income beneficiary (or beneficiaries) or for a term of no more than twenty years. When the trust ends, the remaining assets are distributed under the guidelines that you previously set for your gift to Veritas Christian Academy.
There are two basic types of CRTs, and the payment you receive depends on the kind of CRT that you choose. A charitable remainder annuity trust pays a fixed amount each year for as long as the trust term lasts. The payment must be at least 5% of the value of the trust assets when it is established. The charitable remainder unitrust differs in that the payments may be variable because you are receiving a fixed percentage of the unitrust’s assets as revalued each year. The payment must still be at least 5% of the trust’s value, but in this case, it is revalued annually.
What Are the Benefits of Setting Up a Charitable Remainder Trust with Veritas Christian Academy?
- Ensure a bright future for Veritas and continue the storied tradition of giving.
- Supplement your retirement income with the potential for long-term income growth.
- Unlock appreciated assets (securities, real estate, business interests, etc.) without incurring a capital gains tax.
- Remove assets and future appreciation from your taxable estate.
- Obtain a significant income tax charitable deduction.