All charitable remainder trusts
, charitable lead trusts, and pooled income funds that had financial activity during Calendar Year 2001 were required to file this form.
Charitable remainder trusts
pay a stream of income annually to one or more non-charitable beneficiaries until the trust is terminated, either by the death of a specific recipient (often the donor or surviving spouse) or at the end of a specified period (not to exceed 20 years).
Harry Estroff, Real Estate Gift Manager, and Martin Carovano, Associate Director of Gift Planning at the environmental conservation organization, The Nature Conservancy, estimate that there is between $200-$230 billion worth of total contributions annually to charitable remainder trusts
or similarly structured donations.
Conversely, charitable remainder trusts
that are unitrusts, which pay out a predetermined percentage of the net fair market value (FMV) of the trust each year, are not as attractive for individuals in this low-interest-rate environment because the remainder interest passing to the beneficiaries is calculated using the unitrust percentage (at least 5%), rather than the Sec.
9) Any income that a charitable remainder trust
receives from a trade or business that is not substantially related to its exempt purpose is subject to tax.
Under this approach, the grantor of the charitable remainder trust
would also create an irrevocable life insurance trust or ILIT for the benefit of the family and make gifts to the trust with which the trustee may purchase life insurance.
Unlike charitable remainder trusts
, charitable lead masts are not tax-exempt The primary benefit of a CLT lies in its potential gift-tax advantages.
14 suggest that its protection should not apply to a self-settled trust like a charitable remainder trust
or grantor retained annuity trust.
If you want to make a gift of money or appreciable property to an IRS-recognized charity, while at the same time providing for a child with a disability or other special need, a 1969 change to the tax code allows you to set up a Charitable Remainder Trust
and transfer the property to the CRT rather than directly to the charity.
The two main types are the charitable remainder trust
and the charitable lead trust.
A Charitable Remainder Trust
permits a property owner to contribute appreciated property to a Charitable Remainder Trust
(CRT) for the benefit of a designated charity.
For this reason the NIMCRUT is perhaps the most popular type of charitable remainder trust
, since it allows for the deferral of income to later years, much like a deferred-income retirement plan, and still allows the trustee to maximize the payout amount.
Another way to fill a charity's Christmas stocking with money is through a charitable remainder trust
Gifts that Offer Income for Life--Such gifts may include a charitable gift annuity, charitable remainder trust
, charitable lead trust, or pooled income fund.
With a type of charitable remainder trust
known as a "flip trust," you can make a gift for the future benefit of your favorite charitable organization, obtain an income-tax deduction, avoid capital gains tax and receive an income stream for life.