Charitable Remainder Unitrust
Charitable remainder unitrusts allow you to make a substantial gift of cash, securities, real estate and possibly other assets, and receive income from the trust
based on a fixed percentage of the annual fair market value. Income will fluctuate with the annual net fair market value of the trust.
The initial trust value is established by the net fair market valued of the assets. You choose who will receive the income; you may designate yourself and your spouse as income beneficiaries or you may wish to name your children or other loved ones. When the specified income period ends, the trust assets are distributed to the ELCA ministries you have designated.
With a charitable remainder trust you can:
+ give to the ministries of the ELCA
+ receive income for life or a term of years
+ receive an immediate charitable tax deduction
+ bypass capital gains taxes
+ reduce or eliminate estate taxes and probate costs
Tax BenefitsIn addition to providing for yourself, your loved ones and ELCA ministries, charitable remainder trusts provide additiona tax benefits.
You receive an immediate charitable deduction of the present value of the calculated charitable remainder of the assets initially given. If your deduction exceeds what you may deduct in the year of your gift, the remaining portion can be carried forward for up to five years.
Bypass capital gains taxes if you make a gift of appreciated assets. Your appreciated asets are placed in your charitable remainder trust. The ELCA, as trustee, sells the assets and invests the proceeds to meet the requirements of the trust. Because the trust is considered a tax exempt entity, no capital gain tax is paid on the sale of its assets. In order to take advantage of this bypass, you must place the assets in the trust before they are sold.
Reduce or eliminate estate taxes and probate costs. Your gift to a charitable remainder trust is irrevocable. When an individual or married couple are the only income beneficiaries, the trust is not taxed to the estate. If there are other income beneficiaries, the estate tax benefits may be reduced.
Disclosure StatementHere to helpOur nationwide network of
professional gift planning staff can help you explore a variety of possibilities for making a significant gift to ministry and fulfilling your legacy goals at the same time.
The examples and information listed above are for illustrative and educational purposes only and should not be considered tax or legal advice. Please consult with your tax or legal advisor about proceeding with your estate plan.