Charitable Remainder Trusts

Are you interested in making a charitable gift that provides you income each year for the rest of your life?   A Charitable Remainder Trust may be the appropriate giving vehicle for you.

A Charitable Remainder Trust is an irrevocable trust that pays a specified amount or specified percentage of the value of the trust assets each year to one or more people for a fixed term of years (or for the life of the individual recipients).   At the end of the fixed term or at the death of the last individual recipient, the remaining trust assets are distributed to the charity.  A Charitable Remainder Annuity Trust provides a fixed payment; a Charitable Remainder Unitrust pays out a fixed percentage of the trust value each year.

Benefits

• Your gift benefits charity.
• Your gift provides an additional source of lifetime income for you, your spouse or other significant persons.
• Your gift provides a potential increase in the income you are currently receiving from your investments.
• Annuity trusts and Unitrusts provide tax benefits as well as financial rewards.

How It Works

• You transfer cash, securities or other appreciated property into a trust.
• Each year, the trust makes payments to you or beneficiaries you name.
• When the trust terminates, the remainder passes to the Archdiocese of Milwaukee to be used as you direct.

Ways to Fund Your Charitable Trust

• Cash. Writing a check is the least complicated way to fund the trust. The trustee can then invest the cash.
• Stock. Appreciated stock is an ideal choice, especially if your stock produces only a modest income. Contributing low-yield stock can immediately boost your cash flow by means of a higher payout from the trust. You escape up-front tax on the stock's capital gain and receive a income tax charitable deduction. Stock is easy to transfer to the trust.
• Real estate. You can contribute appreciated real estate (without a mortgage or lien) that you've owned for more than one year and realize benefits similar to those for a stock gift. The donated property may be a residence (a personal residence must be vacant upon contribution), undeveloped land, a farm or commercial property.

Contact us for assistance and more information.