Charitable Trusts

Charitable Remainder Trusts

Charitable remainder trusts enable you to meet your financial goals — receiving an income stream during your lifetime — while also addressing your philanthropic goals of supporting organizations you care about.

Typically established with a significant appreciated asset, a Charitable Remainder Trust can provide you or another beneficiary with income during your lifetime. When the trust ends, the remaining value will be distributed to charities that you choose.

Depending on the type of trust you create, the beneficiary will receive a fixed dollar amount determined when the trust is established or a fixed percentage of the principal in the trust, which is revalued annually.

The tax benefits can be significant. You can receive an income tax deduction on the donated assets for the present value of the charitable portion of the gift and eliminate or defer taxes on capital gains. Charitable remainder trusts are especially useful for donors who want to make a large charitable contribution but still desire the income generated by the property to be donated.

Benefits of a Charitable Remainder Trust

  • Avoid capital gains taxes for highly appreciated assets
  • Receive an immediate charitable tax deduction
  • Receive payments during your lifetime
  • Make a significant gift that benefits you now and the Jewish community later

Charitable Lead Trusts

A Charitable Lead Trust provides income to charitable organizations during your lifetime or for a set period of years. When the trust term ends, the property held in trust will return to you or your beneficiary.

You receive an immediate federal income tax deduction equal to the present value of the future income stream. You are taxed each year, however, on the trust income.

Benefits of a Charitable Lead Trust

  • Support an organization during your lifetime and pass your asset on to your heirs
  • May reduce gift and estate taxes on assets you pass on to heirs
  • Make a significant gift that benefits charity now and your heirs later

Read Dr. Lucy Rosenberg’s story

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