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CHARITABLE ACCOUNTS AND FOUNDATIONS
Several types of trusts provide protection for you and your family and support for a favorite charity. There can be valuable income, estate and gift tax advantages to these arrangements that make the creation of these trusts even more interesting and advantageous. Tax benefits are only available to charitable trusts that are irrevocable, that is, they can never be changed. If you are interested in benefiting your family and a charity, some of the estate planning tools you might want to consider includes a Charitable Remainder Trust, a Charitable Lead Trust or a Private Foundation.
Charitable Remainder Unit Trusts, (commonly known as CRUT)
A CRUT is an irrevocable, tax-exempt charitable trust that provides benefits to the donor and, ultimately, to the charity or charities specified by the donor. Benefits may include: current income tax deduction, avoidance of capital gains tax on appreciated property, annual income from the trust, estate tax savings, exclusion of the trust and its assets from your estate and, hopefully, growth of the investments and assets in the trust. Upon the death of the beneficiary or beneficiaries of the annual income distributions, the charity or charities receives all remaining property in the trust. Annual income distributions from a CRUT are determined by the value of trust assets and cannot be less than 5% of the trust's value.
Charitable Remainder Annuity Trusts, (commonly know as a CRAT)
Similarly, a CRAT is an irrevocable, tax-exempt charitable trust that provides benefits to the donor and, ultimately, to the charity or charities specified by the donor. Benefits may also include: current income tax deduction, avoidance of capital gains tax on appreciated property, annual income from the trust, estate tax savings, exclusion of the trust and its assets from your estate and, hopefully, growth of the investments and assets in the trust. Upon the death of the beneficiary or beneficiaries of the annual income distributions, the charity or charities receives all remaining property in the trust. Here, annual income distributions from a CRAT are a fixed dollar amount or a fixed percentage of the initial value of the property contributed to the trust.
Charitable Lead Trust
Another kind of trust is a Charitable Lead Trust. Here, the charity receives the income for a specified number of years after which the assets and property in the trust passes your heirs.
Private Foundations
Private foundations afford generous individuals the opportunity to manage and provide for philanthropic objectives. The benefit of tax-exempt charitable status is possible while providing funding for charities of the donor's choice.
Public Foundations
We extensively serve public foundations with Investment Management services. We draw upon our sources of research and analysis to tailor a plan to manage funds and investments to meet goals and objectives.
Investing is our business. We take it seriously. We are well informed and able to help you develop a plan suited to your goals, objectives and needs. We believe sound Investment Management requires work, attention to details, objectivity and decisions grounded in experience.
We can provide Investment Management services and function as trustee for your charitable trust or foundation. Look to us for help with your charitable trust or foundation.
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