UNDERSTANDING THE OPTION
A charitable remainder trust generally makes payments to named individuals for life or a stated term, with the remaining trust assets eventually passing to charity. A unitrust pays a percentage of assets revalued each year; an annuity trust pays a fixed amount.
A charitable lead trust reverses the sequence: charity receives payments for a defined period, after which remaining assets pass to family or another beneficiary.
Trusts require an attorney, trustee, administration, tax reporting, and careful asset review. The right design depends on the donor’s goals, the transfer asset, expected investment performance, payout terms, and federal rates in effect when funded.
Why donors consider it
- Can separate an asset’s income interest from its remainder
- May diversify appreciated property inside a trust without an immediate sale by the donor
- Can create payments for people or charity
- Offers flexible family and charitable planning
A thoughtful process
- Clarify income, family, and charitable goals
- Ask advisors to compare trust and non-trust approaches
- Confirm proposed assets with the trustee and Shrine Mont
- Review formal projections under several assumptions
- Have counsel prepare the governing document
Points to discuss with your advisors
- Irrevocable and more complex than an outright gift
- Trustee, investment, legal, and tax costs apply
- Payments and deductions are governed by detailed federal rules
- Results depend on markets and assumptions
This overview is not legal, tax, investment, or financial advice and does not confirm that Shrine Mont can accept a particular asset or arrangement. Please consult qualified advisors and contact Shrine Mont before taking action.