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Charitable remainder trusts
Choose your payment basis
If you are looking for additional ways to receive reliable payments, consider a charitable remainder trust.
These types of gifts may offer you tax benefits, including up-front capital gains tax elimination if you fund the trust with appreciated assets, and the option for income. There are two ways to receive payments and each has its own benefits:
- The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
- The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is determined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.