Gifts by Will | Life Insurance | Retirement Plans | Charitable Trusts
Charitable trusts offer many options and benefits for people interested in legacy giving.
With a Charitable Remainder Trust, you irrevocably transfer assets to the trust and then the trust makes payments to you or another beneficiary for life or for a specified term of years (up to 20). Upon the death of the last surviving beneficiary, the remaining assets of the trust are distributed to the St. Louis Arc.
Charitable remainder trusts are particularly attractive for people who wish to donate highly appreciated assets such as securities or real estate or assets that produce little or no income. Among the benefits of charitable remainder trusts are that they provide an income stream for you or another person during the term of the trust and may allow you to avoid capital gains taxes on appreciated assets. You may also receive an income tax deduction for the appreciated value in the year you transfer assets to the trust.
There are two kinds of charitable remainder trusts: unitrusts and annuity trusts. The unitrust pays a fixed percentage of the annual value of the trust as income while the annuity trust pays a fixed dollar amount as income.
A Charitable Lead Trust is the mirror-image of the charitable remainder trust. With a charitable lead trust, you transfer assets to a trust which then makes payments to the St. Louis Arc for your lifetime or another specified time period. After that period, the assets are transferred back to you or your heirs.
Charitable lead trusts allow people with substantial estates to pass assets to their heirs free of, or with greatly reduced, federal gift and estate taxes while also helping charitable organizations.
The charitable lead trust can be a powerful estate planning tool, but its complexity requires careful consideration of the technical requirements of this form of gift.
To learn more about charitable trusts and how they can meet your goals for charitable giving, please contact your advisor or John Taylor, Vice President, Advancement, or call 314-817-2240.
If you plan to or already have included a legacy gift to the St. Louis Arc in your estate planning, please let us know by emailing our Advancement Office, or by calling 314-817-2240 so that we may acknowledge your generosity.
This information is not intended as legal, estate, or tax planning advice. Please consult your professional legal and financial advisors for complete information.
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