Charitable Remainder Trusts
A great way to make a gift, receive payments that may increase over time, defer or eliminate gains tax, and allow you to give to the ministry of CBN. It provides steady cash flow and can be more beneficial than keeping an asset or selling it outright.
There are 2 main types of charitable remainder trusts:
- The charitable remainder annuity trust (CRAT) distributes a fixed annuity amount each year, and additional contributions are not allowed.
- The charitable remainder unitrust (CRUT) distributes a fixed percentage based on the balance of the trust assets (revalued annually), and additional contributions can be made. If the value of the trust increases, so does your income and, ultimately, your charitable gift to CBN. If the trust value decreases, so does your income and CBNs benefit from the trust.
Contributions to CRATs and CRUTs are an irrevocable transfer of cash or property. Both are required to distribute a portion of income or principal, to either the donor or the beneficiary. At the end of the lifetime or term for the donor or another beneficiary. At the end of the specified lifetime or term for the income interest, the remaining trust assets are distributed to one or more charitable remainder beneficiaries.
