Charitable Remainder Trusts

A Charitable Remainder Trust (CRT) is an excellent vehicle for gifts of appreciated stock or property, because the assets in a charitable trust are exempt from taxes. The full sales proceeds of property remain in the trust to provide income to the designated beneficiaries.

You establish a CRT by transferring assets to a trustee, who then invests the trust's assets and pays you and/or other beneficiaries an annual income. At the end of the trust term, the assets remaining in the trust are distributed to CFGP for the purpose you designate.

Upon establishing a CRT, you are entitled to a current income tax deduction for a portion of the value of the gift transferred to the trust, which is often between 30 and 60 percent of the value of the assets transferred.

Benefits

  • Choose from Fixed or Variable income payment plans
  • Support for your spouse or other beneficiaries
  • Investment diversification
  • Federal, and possible state, charitable income tax deduction
  • Pay no immediate capital gains tax on the transfer of appreciated assets
  • Reduce or eliminate estate taxes
  • Make a meaningful gift that supports your personal charitable goals

You can donate a wide variety of assets to a trust: Cash, publicly traded securities, closely held stock, real estate, art, antiques, collections, or intangible assets such as royalties.

Variable payments are based on a percentage of the fair market value of the trust assets, revalued each year. Because you receive a percentage, not a flat dollar amount, if inflation (or wise investment) pushes up the dollar value of the assets, your payments go up accordingly. Under IRS rules, you must receive at least 5% of the value of the trust each year.

Act Now

Learn more about the steps in thoughtful planning. The Catholic Foundation of Greater Philadelphia is established to be a tool for you to leave a lasting and secure legacy. Use our request for information form to learn more.