Charitable Remainder Trusts

Ways to GiveCharitable Remainder Trusts

With a Charitable Remainder Trust, you or other named individuals can receive income each year for life or a period not exceeding 20 years from assets you give to the trust you created.  Payment can be either variable or a fixed amount.  After the life of the named individuals or the set period of time, the balance in the trust goes to the charities of your choice. 

 

How It Works:

You:

  • You give cash or property to the trust
  • You receive an income tax deduction and named individuals receive income for life or a set period of time.

BBBSCM/MW:

  • Receives the balance after the lifetime of named individual or a period of years

Your Possible Benefits:

  • A partial charitable income tax deduction
  • Potential for increased income
  • Up-front capital gains tax avoidance
  • Professional management of trust assets available

Choose Between Two Main Types

Annuity Trusts pay you, each year, the same dollar amount you choose at the start of the trust.  Your payments stay the same, regardless of fluctuations in trust investments.

Unitrusts pay you each year, a variable amount based on a fixed percentage of the fair market value of the trust's assets.  The amount of your payments is recalculated annually.  If the value of the trust increases, so do your payments.  If the value decreases, however, so will your payments. The vast majority of Charitable Remainder Trusts that are formed are Unitrusts.

To learn more about how you can support Big Brothers Big Sisters Central Mass/Metrowest through a trust contact Harold Pinkham, Director of Advancement, at at 508-752-7868 ext. 12