Charitable Remainder Trusts
You can make a gift that gives income back to you or someone you select. You can make this type of gift by creating a Charitable Remainder Trust. Charitable Remainder Trusts offer tax advantages, provide you with regular income, and establish a wonderful gift to the Hinsdale Central Foundation.
To establish this trust, you will make an irrevocable contribution of cash or other assets to the Hinsdale Central Foundation. A qualified trustee (a Bank or investment firm) then invests the assets and pays income for the rest of your life and/or the life of another whom you designate. When the Trust expires, the remaining assets then pass to the Hinsdale Central Foundation
There are two types of Charitable Remainder Trusts:
- A Charitable Remainder Unitrust produces income from the trust that fluctuates with the value of the assets held as the principle. As the value of the unitrust assets grows or declines, the income paid out increases or decreases proportionately.
- A Charitable Remainder Annuity Trust produces a fixed income each year. The dollar amount of the income is set as a percentage of the amount originally placed in the trust and does not fluctuate with the value of the assets held in trust.
There are several advantages of a Charitable Remainder Trust with the Hinsdale Central Foundation.
- You receive a charitable tax deduction in the year you establish the trust.
- By funding the trust with appreciated assets, you bypass capital gains tax on the appreciation. A CRT is especially attractive when assets currently yield little annual income.
- You can receive income for your lifetime and the life of your other beneficiaries.
- When the trust is dissolved, you have made an invaluable gift to the Hinsdale Central Foundation.
Consider discussing with your financial advisor or attorney one of two types of Charitable Remainder Trusts: A Charitable Remainder Unitrust or a Charitable Remainder Annuity Trust.
Please consider consulting your attorney and/or tax advisor when planning a donation to the Hinsdale Central Foundation.