A Charitable Trust is a wonderful example of a gift that can benefit both the Church and you or your family members. There are different types of charitable trusts, which make them a flexible charitable giving option. It is this flexibility that makes it so attractive to a wide variety of donors. It is worth noting that a Charitable Trust is different than a Personal Trust that you might have drafted by a lawyer. The two types of charitable trusts that exist are Charitable Remainder Trust and the Charitable Lead Trust.
Charitable Remainder Trust
A Charitable Remainder Trust (CRT) allows you to donate cash, marketable securities or other assets to The Catholic Foundation, and in return you receive regularly scheduled payments for life or for a pre-determined number of years. At the end of the term, the organization that you designate receives the remaining assets.
Additional Benefits for Charitable Remainder Trust
• Allows fixed or variable payments for life or a term of years for you or others
• Reduce estate and gift taxes
• Receive an immediate tax deduction based on the present value of the charity’s future interest
Charitable Lead Trust
A Charitable Lead Trust (CLT) provides fixed income payments to your selected charitable organization for a specified number of years. At the end of the term, the remaining balance in the trust is transferred back to you or your heirs.
Additional Benefits for Charitable Lead Trust
• Allows you to make an ongoing gift to charity, while retaining a future interest in the asset
• Ability to pass assets on to heirs at a substantially discounted value
• Receive a current-year tax deduction for the present value of the amount the charity will receive
• $100,000 minimum