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                   Charitable Remainder Trust

Temple Sinai has launched an Endowment Program to support its mission. If you would like to invest in the future of Temple Sinai, you may wish to consider establishing a Charitable Remainder Trust.

 

A Charitable Remainder Trust constitutes an extremely popular way to make a gift to an endowment. Such as trust is established by donors who wish to receive an income from their investments for life or for a term of years. Whatever remains in the trust after the payout period is over is distributed to the Temple Endowment Fund to support its programs. Under IRS rules, the federal government gives donors of Charitable Remainder Trusts substantial tax advantages. These include income tax deductions in the year the trust is funded, capital gains avoidance if the trust is funded by appreciated assets held long term, as well as estate and gift tax deductions.

 

 

Assets to Fund Charitable Remainder Trusts

 

 Typical assets used to fund Charitable Remainder Trusts include:

 

• Appreciated securities owned for more than one year

 

• Cash and Certificates of Deposit

 

• Municipal bonds and other tax-exempt securities

 

• Real estate

 

Contributions to Charitable Remainder Trusts

 

Because of legal and administrative expenses, it is not practical to establish a Charitable Remainder Trust for a gift less than $100,000. Discuss your plans with a lawyer who is experienced in the field. We would be happy to work with him or her in developing tailor-made calculations estimating the tax deductions and other benefits you would gain from making such a gift.

 

Types of Charitable Remainder

Trusts

 

Annuity Trust This trust is appropriate for people who wish to make a gift of cash or securities and who want to know exactly how much income they will receive each year since the payout is always a fixed amount. The income amount is determined when the trust is first funded. In most cases, the charitable income tax deduction is larger than that for a Unitrust.

 

Unitrust

 

This trust is appropriate for donors of large gifts of cash or securities who prefer a variable payout. Payments to the income beneficiaries of a Unitrust fluctuate since the value of the trust principal changes over the years. Unlike an Annuity. Trust, the Unitrust can accept additional contributions that the donor might with to make over the years.

 

How a Charitable Remainder Trust Works

 

It can be extremely simple:

 

1. You transfer assets to the trustees of a Charitable Remainder Trust

 

2. The trustees invest the assets in a way that provides you with income for life or for a      set term of years.

 

3. When income payments are no longer required, the trustees distribute the                      remainder in the trust to the Temple Sinai Endowment Fund.

 

Fri, August 18 2017 26 Av 5777