Charitable Remainder Annuity Trust: How to Accept
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Gift Planning
Charitable Remainder Annuity Trust: Tax Issues
The tax benefits of a CRT happen on both ends: The benefactor gets tax benefits in the form of a charitable deduction when the trust is set up, and the asset is likely removed from the estate.
Charitable Remainder Annuity Trust: Assets That Fund It
Typically, the assets that fund a CRAT are highly appreciated assets that have been held long-term and are easily convertible to an income-producing asset.
Charitable Remainder Annuity Trust: Who, Why, When
WHO: Typically, a benefactor who takes advantage of a CRAT is between 50 and 70 years of age.
Charitable Remainder Annuity Trust: How it Works
A CRAT must pay a fixed rate of return at least annually, and the minimum amount it must distribute is 5% of the original funding value.
Charitable Lead Trust (CLT)
CLTs are almost always initiated through the work of the benefactor's financial advisors and not through the development officer. Why?
Estate: How to Accept
It's an unfortunate fact that a significant number of charitable donors do not have a current will.
You can do your donors a service by bringing up the possibility of including your organization in their estate plan--simply for the fact that it's a way to remind them of the importance of having an up-to-date document.
Estate: Tax Issues
On a federal level, the estate tax is relevant to a very small number of families. That said, those very families are ones you and your organization would hope to have a relationship with.
Estate: Assets That Fund It
Wills and revocable living trusts are often used to:
Estate: Who, When, Why
WHO: Every prospect you work with has the capacity to include your organization in their estate plan!
Donors are people, and people as a rule have to deal with their mortality. Now, you’ll hear statistics saying less than 50% of people have as much as a simple will. In truth, though, the chances are much better that the donors you deal with do have an estate plan, and as such have the capability of including your organization in that plan.
But how do you broach the subject? Ask donors if their estate plan is current.