Charitable Remainder Annuity Trust
How It Works
Planned Parenthood Federation of America, Inc. can serve as trustee of a charitable remainder annuity trust for gifts of $100,000 or more. You can also select a financial institution to serve as your trustee.
Typically such a trust is invested in a balanced portfolio that is designed to produce both income and growth over the term of the trust. An annuity trust may also hold tax-free bonds.
Gifts of cash or appreciated securities yield the same result for tax deduction purposes. However, gifts of appreciated securities have the added value of avoiding capital gains taxes.
It depends on the age(s) of any children you name as income beneficiaries. The charitable interest in any trust must be at least 10 percent of the value of the assets donated to the trust. This interest is calculated using the life expectancies of the income beneficiaries. Thus, the younger your children, the longer their life expectancy, and the smaller the charitable remainder value. Even younger adult children may disqualify the trust; our team can run test calculations for you.
A charitable remainder annuity trust is a powerful tool that can save you income, capital gain, estate and inheritance taxes depending on your circumstances and state of domicile. A qualified advisor is crucial to assist you in maximizing these benefits.