Charitable Trusts
A Charitable Remainder Trust (CRT) allows you to realize tax advantages while making an ultimate gift to Christian ministries, yet receive some income from the property gifted as well.
A CRT is funded by a transfer of cash or appreciated assets such as stocks, bonds, mutual funds, or other appreciated property to an irrevocable trust, which then provides current payments to one or more individuals, followed by a distribution to a charitable beneficiary at the end of the trust period. The trust can be established so that payments will be received for life or for a set number of years.
The amount of your income payments will be a percentage of the initial value of the trust, in the case of a Charitable Remainder Annuity Trust, or a percentage of the value of the trust as of the beginning of each year, in the case of a Charitable Remainder Unitrust.
A federal tax deduction is allowed at the time that you create the CRT. The amount of the deduction depends on, among other things, factors such as your age, the payment percentage you select, and the applicable federal rate.
The PCA Foundation can not only show you how a CRT might work for you, but can also assist you and your advisors in establishing a CRT, and can serve as trustee of your Charitable Remainder Trust.
Be sure to consult your personal tax advisor or attorney to verify that a Charitable Remainder Trust is a viable option for you. You may also contact the Church Office for more information.
