A charitable remainder trust is an irrevocable trust that allows you to make a gift while at the same time receiving payments. There are two types of Charitable Remainder Trusts The first type is a unitrust (CRUT). When you make a gift, you receive a fixed percentage (which must be at least 5% and not more than 50%) of the net fair market value of its assets, valued annually, paid to you, or to you and additional people, for life. The second type is an annuity trust (CRAT). The payments to you or to you and additional people, are a fixed amount established at the time of the gift. For both types, at the end of your life, the remainder of the CRUT or the CRAT benefits the church and/or charity you choose.
As part of the work we do with you and your attorney to establish the trust, we will together craft an Agreement with the Foundation that will provide us with instructions regarding the creation of an endowment to fund the ministry you choose with the residual of the trust after your death.
If you have any questions about a charitable remainder trust, please contact us. We would be happy to assist you and answer any questions you might have.
Charitable remainder unitrust and annuity trusts. A charitable remainder unitrust pays you income that reflects the value of the trust's assets. Your income has the potential to increase over time as the trust grows in value. A charitable remainder annuity trust (CRAT) pays a fixed amount each year based on the value of the property at the time the trust is funded.