Charitable remainder trusts are personal, individualized trust plans under which the donor and/or a designated beneficiary receive income for life or a fixed number of years. The irrevocable remainder interest is distributed to JFCS (and/or other charities) when the trust terminates. Assets which are easily accepted into a remainder trust include cash, marketable securities, closely held stock and real estate.

• Income is paid to the donor and/or a designated beneficiary for life or for a set number of years.
• The donor may claim an income tax deduction in the year the gift is made (which can be carried over for up to five additional years); deduction is based on the full fair market value of the gift, the payout rate selected, and IRS actuarial tables.
• The donor may avoid capital gains taxes on long-term appreciated securities or real estate.
• Income from low-yielding assets may increase substantially, without shrinkage due to capital gains taxes.
• The donor may receive estate and gift tax benefits.

Annuity Trust
Pays a fixed dollar amount based on a percentage of the initial contribution. No additional gifts can be made to the trust.

Tuition Trust
A type of charitable remainder annuity trust established for a set number of years (usually four to eight years) that will help offset the cost of tuition. The income generated from the trust is taxed at the student's lower income tax rate. At the end of the term, the trust property passes to Jewish Family and Children's Services to be used where most needed or as prescribed by the donor.

Unitrust
Pays a variable rate of return based on the principal of the trust valued annually. Offers a chance for higher return over time and a hedge against inflation. Additional gifts can be made at any time.

Retirement Trust   (Net Income or Net Income with Makeup)
A type of charitable remainder unitrust that pays the beneficiary the stated percentage or the net income earned by the trust, whichever is less. Does not allow the trust to invade the principal to make a payment.

If payments are less than stated percentage, the donor may elect to make up for lost income and receive additional income above the stated percentage in future years. In this way, when donors need additional income at retirement age (and when they are in a lower tax bracket), the income can be increased.

Can be funded initially with growth stocks to maximize total return. Therefore, in early years the trust would pay little or no income. After a period of time, when the trust has appreciated in value, it may be converted to high income producing assets. Ideal for assets (like real estate) that may not immediately be income producing.

• Make gifts of long-term appreciated securities and avoid capital gains tax.
• Receive a higher return from low yielding, appreciated securities.
• Make a significant gift to JFCS, while retaining annual income (for self or a beneficiary) from their asset.
• Have assets professionally managed (by JFCS as trustee or by an independent trustee selected by donor).