Security for your Assets: Charitable Lead Trust
You can use your assets to care for your family and support causes you care about. By combining cash and other assets into a charitable lead trust, you can make regular donations to the MREA over a period of time and after the term the balance is transferred to a beneficiary you select.
You have two options for charitable lead trusts to make payments to the MREA:
A charitable lead annuity trust pays a fixed amount each year to the MREA and is more attractive when interest rates are low and the growth of the assets are smaller.
A charitable lead unitrust pays a variable amount each year to the MREA based on the value of the assets in the trust. With a unitrust, if the trust’s assets go up in value, for example, the payments to the MREA go up as well.
Reliability for Large Estates: Charitable Remainder Trust
If you value reliability and consistency and you have a sizable estate, a charitable remainder trust may be a good option for you to take advantage of tax benefits a receive regular payments. Over a period of 20 years or less, you will be paid regular payments every year in one of two ways. At the end of the trust term, the balance in the trust goes to the MREA.
The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is recalculated annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.
Relevant Assets:
- Cash
- Appreciated Securities
- Real Estate
- Tangible Personal Property
- Closely Held Stock
- Retirement Plan Assets