Charitable Remainder Trusts
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.
Charitable Remainder Trusts offer income for you or a loved one for life or a term of years, with the remainder transferred to JFCS upon termination of the trust. Assets that have substantially appreciated in value but are providing a low return are well-suited as gifts. You may avoid or postpone capital gains taxes, lower your income taxes, and earn higher returns with a Charitable Remainder Trust.
What Benefits Can I Expect?
A Charitable Remainder Trust is:
- Smart – It’s a win-win situation, providing future 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, capital gains taxes are postponed or avoided. 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 an endowed Named Fund with the remainder, ensuring that their gift will provide for the community in perpetuity.
How It Works:
- You irrevocably transfer cash, securities, real estate, or other appreciated property into a Trust.
- Unitrusts pay you (or your designated beneficiaries) a percentage of the market value of the assets (revalued annually) for life, or for a term of up to 20 years. You can add to your gift at any time.
- Annuity trusts pay you (or your designated beneficiaries) a fixed annual income based on a percentage of its original market value for life, or for 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 Remainder 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 Charitable Remainder Trust.