Put Your Nest Egg to Work: for Yourself, Your Family, and Your Community

Like many others, you want to make sure that you can support yourself through retirement and leave a nest egg for the next generation. At the same time, you may remember the helping hands that were extended to you as you made your way in the world, and want to give back to the community that provided support—while not jeopardizing the well-being of your family. A charitable remainder trust – one of the most versatile estate planning tools available – may be just the answer.

A charitable remainder trust (CRT) can address many of your personal financial goals while providing the ability to make a significant and meaningful gift to the community. An irrevocable, tax-exempt trust has two parts: 1) the income paid to you or loved ones for life or a term of years, and 2) the money remaining in the CRT after your and/or beneficiary’s lifetime(s). The remainder is your gift to JFCS, ensuring your legacy and philanthropic impact live on.

What Benefits Can I Expect? 

A charitable remainder trust is:

• Smart. It’s a win-win situation, providing crucial support for our community while making sure you and your family are provided for during your lifetimes.
• Tax-efficient. If you fund a trust with appreciated securities or property, no capital gains tax is due. You also receive an immediate income tax deduction in the year in which you establish the trust for the present value of the gift. The trust assets are excluded from your estate, which may reduce estate taxes for your heirs.
• Flexible. Income payments are tailored to meet your needs. Income can be for a specific number of years or for life. Income payments can be fixed or variable.
• Enduring. You may be able to direct how the remainder is used by JFCS after your lifetime. Many of our donors choose to establish a named endowment fund with the remainder, ensuring that their gift will provide for the community in perpetuity.

Is a CRT Right for Me?

A charitable remainder trust is appropriate for people who:

• Want continuing income.
• Own securities or properties that have increased in value but earn little income (although you can create a trust with cash as well).
• Want to minimize income, estate, and capital gains taxes.

How it works:

• You irrevocably transfer cash, securities, real estate, or other appreciated property into a trust.
          o Unitrusts pay you (or your designated beneficiaries) a percentage of the market value of the assets (revalued annually) for life, or a term of up to 20 years. You can add to your gift at any time.
          o Annuity trusts pay you (or your designated beneficiaries) a fixed annual income based on a percentage of its original market value for life, or a term of up to 20 years.

• Select a trustee: You can name a person or institution of your choice to administer your trust. You may want to consider naming JFCS as trustee. We administer a significant portfolio of charitable trusts.

• Setting up a charitable remainder trust is relatively easy, but you should be advised by an attorney with expertise in estate planning. Our planned-giving experts can work with you and your attorney to establish the trust.

• We recommend a minimum value of $250,000 to establish a CRT.
 

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