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Charitable trusts.

Making a gift to support a cause you believe in can be more than a reflection of your personal values. Thoughtful, planned giving can play an important role in your overall financial strategy. Some people choose to make gifts outright during their lifetime. Some decide instead to remember a charity in their will.

Others elect to make a gift by establishing a charitable trust. In addition to the satisfaction of giving, a charitable trust may help with several different tax advantages.

Is a charitable trust a good idea for you?

A charitable remainder trust is designed to pay annual income to the donor. In this case, the trust document provides that income earned by the trust goes to the donor and/or beneficiaries while the donor is alive, with the remainder going to charity upon the donor's death. Though cash or other property can be used to set up the arrangement, securities generally are the most common means of funding a charitable remainder trust. Once established, the trust cannot be amended or revoked.

Ultimately, at the time of the donors death, the charity named receives full ownership of the trust assets.

There are two types of charitable remainder trusts: the annuity trust and the unitrust. Each has different advantages and benefits.
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Publication:Sarasota Magazine
Date:Jan 1, 2000
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