Charitable Trusts Help You Reach Many Goals

Trusts are very flexible planning tools that can be used to accomplish a wide range of goals. Some people rely on them to reduce property management responsibilities. Others use trusts to delay distribution of property to heirs because of their age or other reasons.

Trusts also allow a person to arrange for his or her property to first be put to one use, then to another. A charitable remainder trust offers a way to arrange a meaningful gift for the Jane Goodall Institute or other charities while first providing income for yourself and/or others you name.

Here’s How a Charitable Remainder Trust Functions:

1. You, as the donor, create a trust, drafted by an appropriate professional advisor. (JGI can provide assistance upon request.)
   
   
2. Cash or other property is transferred to the trust to be managed by you or another person or an entity you choose as trustee. The trustee manages the property for you, your spouse, and/or other beneficiaries you choose.
   
   
3. Each year, payments are made from the trust to you and/or other beneficiary(ies).
   
   
4. You receive an income tax charitable deduction and may enjoy capital gains tax savings in the year you create the trust.
   
   
5. Payments continue until the trust ends. The trust document specifies the time when this is to occur, such as at the death of the last beneficiary or after a specific period of time, such as 10 years.
   
   
6. When the trust terminates, its assets become a gift to JGI and/or other charities of your choosing. The gift portion is known as the charitable remainder. 

Typically, charitable remainder trusts are established for $200,000 or more, but may vary depending on individual circumstances. Please contact JGI for more information.

A Gift With an Income That Never Changes 

A charitable remainder annuity trust is a way to make a gift while receiving a fixed, regular income. Income from such a trust can be a reliable supplement to other income in retirement years. Through the use of this planning tool, professional management of assets can also be achieved for you and/or surviving loved ones. The payments received each year must be at least 5% of the amount originally placed in the trust. You determine the exact amount when your trust is created.

A Gift With a Fluctuating Income

Like the annuity trust, the charitable remainder unitrust provides for a gift while a donor retains income. But unlike the annuity trust, the income from a unitrust can fluctuate with the value of the assets placed in the trust.

You determine the annual payout percentage when the gift is made. Each year this percentage (at least 5%) of the value of the trust assets is paid to you or others you name. When the value of the investments increases, more income is received. The income will be less if the value of the assets declines. Additional assets can be placed in the trust, and a tax deduction is allowed for part of each amount contributed.

For those who have reached the limit that can be deducted for contributions to Individual Retirement Accounts (IRAs) and other retirement plans, the charitable remainder unitrust could play a welcome role in building additional income for retirement years.

For any planned gift, please consult your own financial advisor. For more information concerning your estate planning and JGI, please contact Jessica Lindenfelser, Director, Gift Planning, at 703-682-9292 or jlindenfelser@janegoodall.org.