Charitable Remainder Trust: a Life Income Opportunity
A Charitable Remainder Trust (CRT) is a planning tool that can be structured to meet your present and future financial objectives. It’s a gift plan that provides income to you and/or others for life or a term of years that you determine.
To establish a CRT, you irrevocably transfer assets (usually cash, securities, or real estate) to a trustee of your choice. The trustee sells the assets (if the trust is funded with securities or real estate) and invests the proceeds.
There are two general types of Charitable Trusts:
A Charitable Remainder Trust specifies a fixed dollar amount to be paid annually to you or the beneficiaries you name. The payments will never change.
Here’s an example of how a CRT works:
Mrs. Jones irrevocably transfers $100,000 to create a trust that provides her with life income payments. Included in the trust agreement is a guaranteed payout of 7 percent. Mrs. Jones will receive $7,000 annually for the remainder of her life. If income earned by the trust exceeds the fixed payment, the excess is reinvested.
A Charitable Remainder Unitrust pays a fixed percentage of the trust’s value calculated annually to you or other beneficiaries. As the trust’s value grows, so will the annual income distribution.
At the end of your lifetime or term of years, the remaining principal passes to continue ChildFund’s lifesaving work with children.
If you have included ChildFund in your estate plan, please complete our notification form and send it to The Office of Planned Giving at ChildFund.
Please call 1-800-762-9593 for more information.
The purpose of this web page is to provide information of a general nature only. ChildFund is not engaged in providing legal or tax advice. Please consult with your attorney or financial advisor when considering a charitable gift of any type.