What is a Charitable Remainder Trust?
A charitable remainder trust is an irrevocable trust that provides payments for a single lifetime, multiple lifetimes, or a set term of years. These payments can be made to you or other income recipients. New Covenant Trust Company manages the trust assets and makes the payments. After the lifetime of the payment recipient(s) or the expiration of the term of years, the remaining trust assets become available for the work of the Church according to your wishes.
Reasons You May Want to Consider a Charitable Remainder Trust
- Desire to support the work of a Church
- Increase income for yourself or others
- Create charitable contribution deduction
- Capture long-term capital gain without immediate taxation
- Diversify portfolio assets
- Reduce estate size and potential tax
There are two types of charitable remainder trusts: annuity trusts and unitrusts. The primary difference in these two trusts is how trust payment amounts are calculated.
For more information about trust services or any other service provided by New Covenant Trust Company, please contact Chip Walker at 800-528-4083, ext. 5912 or e-mail at cwalker@newcovenanttrust.com. Contact your tax advisor to determine how these trusts would actually affect your estate. |
