Charitable Remainder Trust

Invest in Your Community Through a Charitable Remainder Trust (A financial tool for selling assets tax-free and receiving income for life; the remaining assets go to charity).

Establishing a trust is simple. Cash or property is transferred to the trust. The income beneficiaries receive annually an amount equal to a fixed percentage of the trust’s fair market value (uni-trust) or a fixed dollar amount (annuity trust). Upon termination of the trust, the assets are transferred to your named charitable fund to support your individual or personal charitable giving goals.

What is a Charitable Remainder Trust? A Charitable Remainder Trust is a gift of cash or other property to an irrevocable trust. The donor (or persons designated by the donor) receives annuity payments from the trust for life, or for a specified term of up to 20 years. At the end of the trust term, a charitable fund of the PineBelt Foundation receives the trust remainder.

Benefits of a Charitable Remainder Trust

  • Gives you the satisfaction of making a gift today that will invest in your community and favorite charities for the future
  • Bypasses capital gains taxes on gifts of appreciated assets
  • Provides tax-free growth of assets, increasing the value of your trust
  • Increases your income from low yielding investments or property
  • Provides a guaranteed fixed income, or
  • Pays a variable income as a hedge against inflation
  • Creates an immediate charitable income tax deduction
  • Relieves you of the burdens of management of your assets
  • Allows additional contributions (Unitrust)
  • Reduces estate taxes and settlement costs

How to Give with a Charitable Remainder Trust

#1 – Contact your estate advisor or lawyer about establishing a Charitable Remainder Trust.

#2 – Create a trust by transferring cash, marketable securities, or income-producing property to a trustee you select. The trustee may be one or more individuals, a bank, The Greater PineBelt Foundation, or a combination of these.

#3 – The donated assets (typically cash, securities, and/or real property) are irrevocably transferred to a Trustee.

#4 – Determine which type of charitable remainder trust you want to open, depending on which payment options you prefer. There are two variations:

Charitable Remainder Annuity Trust – pays income as a fixed dollar amount that remains constant for the term of the trust.

Charitable Remainder Unitrust – pays income that varies from year to year.

#5 – At the termination of the trust, the remaining assets pass to the PineBelt Foundation or a named charitable fund for the use you specify.

#6 – A charitable deduction for a portion of your contribution is available on your income tax return in the year you make the gift.

Requirements of a Charitable Remainder Trust

A Charitable Remainder Trust requires a trust document outlining how the trust will operate. Your legal advisor should draft or review this document to assure you that it complies with current laws.

In addition, you may serve as the manager, or trustee, of your own trust. However, many people choose to engage the services of a professional trus-tee to handle the details of managing their Charitable Remainder Trust.

Please click here for a brochure on how to invest in your community with a gift of a Charitable Remainder Trust.

For more information please contact your Professional Advisor or us at or call 601.583.6180