What If You Don't Need the Payments Right Away?
If you don't need your payments from your charitable remainder trust to begin immediately, consider one of the three additional types of unitrusts and their benefits.
Your tax and legal advisors can help you determine whether any of these three unitrusts are right for you.
Case Study: Supplement Your Retirement Income
(The following is an illustration of how this type of donation works.)
Scenario: John is concerned about building sufficient assets for his retirement.
Charitable Solution: One solution is for John to make an annual contribution to a NIMCRUT. He can make contributions whenever he likes. The contributions are not subject to the limits on contributions to qualified retirement plans and provide a charitable income tax deduction in years when his income is high.
Main Benefits: The trust will begin to make distributions immediately, but those distributions will be small as long as the trustee invests the assets for long-term growth. Once John retires, the trustee can change the trust to generate more income, adding a supplemental income stream to his qualified retirement plan distributions.
Because John likely received less than the 5 percent distribution during his working years, he may receive more than 5 percent (up to the amount of prior years' undistributed amounts) in years in which the trust generates more. After his lifetime, the balance is paid to the charities of his choice.
To learn more about how a charitable trust could fit into your long-term financial plans, please contact Swami Shanmuganatha at 808-822-3012 x244 or email@example.com.
Your Next Steps
Getting Started | Is This Gift Right for You? | Case Study | What If You Don't Need the Payments Right Away? | 3 Ways to Fund Your Charitable Trust | Choosing Your Trustee | How to Complete Your Gift | Action Items
Copyright © The Stelter Company, All rights reserved.
The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.