charitable remainder trust

Online Guide to
Charitable Trusts

Learn How to Invest with Elliott Wave Analysis
charitable foundation
Charitable Trust (n. - definition) - a legal vehicle that enables the grantor at some time in the future or at death to direct contributed assets to selected charities.
charitable foundation

Retirement Plan
Guides Online:

401k Simple
Defined Benefit Plan
Money Purchase Pension Plan
Profit Sharing Plan
Roth IRA
Simple IRA
Teacher Retirement

Guides Online:

401k Rollover
Cafeteria Plan Sec 125
Charitable Foundation
Charitable Trusts
Deferred Compensation
Donor Advised Funds
Elliott Wave Analysis
Estate Planning
Fee Based Financial Planning
Hedge Funds
Investment Services Advice
Margin Trading
Money Management
Money Market Savings Account
Mutual Fund Investment Advice
Mutual Funds
Mutual Funds at NAV
Omnibus Account
Payroll Deduction
Pooled Income Fund
Prime Brokerage
Roth IRA Conversions
Rule of 72
Stock Trading
Systematic Trading
Tax Exempt Money Market
Tax Free Mutual Funds
Variable Annuity

Advisory Services:
College Plan Advisor
Elliott Wave Advisers
Long Distance Plan Advisor
Mortgage Loans Advisor
Retirement Plans Advisor

by Retirement Plans Advisor

How should you manage your retirement money in a BEAR Market?

  • In essence, charitable trusts are a legal vehicle enabling the grantor at some time in the future or at his/her death to direct where some of the assets will eventually wind up.

  • Without this means of directly deciding on who the future charitable beneficiary will be; at death, the decision regarding where some of your assets go is effectively made by others and/or by the taxing authorities. It's very much simply a question of this: who should decide on where your "social capital" goes?

  • With or without a particular affinity to a religious organization, charitable cause, educational institutions, hospital etc.; it still might make sense to consider the efficaciousness of this type of vehicle. For most citizens, virtually all of their assets at death can simply go to whomever they wish: spouse, children, grandchildren, other family members, friends etc. But, for others, a portion of their assets will be subject to taxes and used as others decide and it is these others that might want to consider the use of a Charitable Remainder Trust.

  • Typically, these charitable trusts are not structured to minimize asset transfers to other selected heirs; rather, structured properly and, when used with other financial techniques, the net transfer to selected heirs can often be enhanced.

  • Additionally, and importantly, prior to any charitable disbursements from the trusts, the assets within the trusts are used to provide a continuous stream of income for life to the grantor and his/her other named income beneficiaries.

  • Overall, for many people, and for many different scenarios, charitable remainder trusts can prove to be very advantageous.

  • The donor hires an attorney to construct and write the legal documents necessary to create a Charitable Remainder Annuity Trust (CRAT).

  • Assets are irrevocably placed in the trust naming a charity as the eventual recipient of the assets upon the death of the last named lifetime income beneficiary.

  • A fixed amount of income, i.e., 6% to 10%, is paid from a Charitable Remainder Annuity Trust (CRAT) annually to the donor or donor's named income beneficiary (husband, wife) for life. A Charitable Remainder UniTrust (CRUT) pays an annual fixed percent of the underlying assets.

  • The donor of the assets placed in the trust receives a current tax deduction for the donation and they avoid any and all capital gains on the donated assets. The amount of tax deduction associated with the donation depends on the age of the last income recipient and the donor's elected income or percent lifetime payout from trust.

  • Donor can lock in current market appreciation on assets; convert a low yielding stock position to a high yielding bond position; broadly diversify a portfolio; and structure to parallel donated asset's future appreciation. Control of the assets remains with the donor's appointed trustee, which can be the donor.

  • The charitable remainder trust can provide potentially significantly higher lifetime income to the donor, and or other named lifetime income beneficiaries.

  • Potential to replace the gifted value to other intended heirs on a tax free basis, with one of several cost effective life insurance related strategies.

  • Partial or full elimination of the asset gifted from Federal Estate Tax calculations upon the death of the donor.

  • Significantly benefit your favorite charity(s) sometime in the future.

  • Generally, this concept works for everyone with appreciated assets; however, each situation is different and unique and there are a number of variables which enter in the calculations based on age, tax bracket, income payout percentages.

  • If the donor's lifetime payout is a fixed dollar amount then the donor is permitted only a one-time asset donation to the trust (CRAT). A CRUT allows additional contributions to the charitable remainder trust. Income payouts on CRUT's effectively can be deferred within the trusts and paid out at some future date with a catch-up provision; therefore, they can be effectively used as excellent retirement vehicles.

Guides Online:

Annuity Bonus
Annuity Fixed
Annuity Equity Indexed
Annuity Immediate
Business Continuity Insurance
Buy Sell Agreement
Charity Insurance
Common Remitter Service
Company Insurance
Equity Indexed Universal Life Insurance
Executive Insurance
Health Insurance
Health Savings Account
Insurance Product Guide
Key Man Insurance
Long Term Care Insurance
Medical Savings Accounts
Medicare Supplemental Insurance
Mortgage Insurance
Premium Finance
Return of Premium Life Insurance
Split Dollar Insurance
Term Life Insurance
Universal Life Insurance
Whole Life Insurance
Worksite Insurance Plans

Online Insurance
Quote Comparisons:

Free Life Insurance Quotes
Life Insurance Calculator
Low Cost Life Insurance
Term Life Insurance
Term Life Insurance Quotes
Term Life Insurance Rates

College Planning
Guides Online:

529 College Saving Plans
Education IRA
College Financial Aid
FAFSA & Definitions
Financial Aid Programs
Financial Aid Strategies
Scholarships - Loans
State College Aid Agencies

Mortgage Loan
Guides Online:

Adjustable Rate Mortgages
Fixed Rate Mortgages
Home Equity Mortgages
Interest Only Mortgages
Reverse Mortgages

Copyright © 1998-2007. Charitable Trust Information Guide. All rights reserved.

Elliott Wave . Quote Life Insurance Term . Discount Long Distance Rates . Low Cost Life Insurance . College Loan and Scholarship Guide . Term Insurance Life Quote . Mortgage Loan Refinancing Guide . Quote Insurance Life Term . Life Insurance Quote Term . Money Management . Insurance Online Information . Retirement Planning . Quote Insurance Term Life