Planning a Gift to Legal Aid
Charitable Remainder Trusts
Goal: Secure payments for life while reducing market risks
Benefit: Potential increased income and tax benefits
Susan and Fred know what hard work is all about. And now they have some time to relax a bit.
Susan: "I was one of the lucky ones. When I needed help and I didn't have a lot of money, I contacted the Legal Aid Society. I was given advice and was able to protect what I had. I don't know where I'd be today without them."
Fred: "When help is needed the resources need to be there. Attorneys have to be well qualified to adequately represent their clients and the Legal Aid Society needs to have good ones."
Susan: "I benefited when I didn't have a lot - now we can give back. And what a joy it is to know that when we no longer need it, part of it is going to an organization that does. It's awesome - we are changing lives!"
Fred: "That's why Susan and I made the decision. Not only will the trust provide income to us throughout our lifetimes, but we have peace of mind knowing that the remainder will benefit those who need help in our community as a whole."
There are two different types of charitable remainder trusts.
A charitable remainder unitrust (see example) is a popular way to achieve tax benefits as well as a fixed annual percentage on the value of the assets in the trust. The assets are revalued annually and, if the trust value changes, the payment to the beneficiary(ies) changes.
A charitable remainder annuity trust is set up to pay a fixed rate of return based on the initial valuation at the time the property is placed in the trust. The trust assets are never revalued.
Additional information on charitable remainder trusts is available. Charitable remainder trusts provide a good degree of flexibility that is valuable in charitable gift planning, especially when dealing with appreciated assets. For example, a variation on remainder trusts can be an effective way to make gifts of real estate.
Susan and Fred are happy that they have made a difference; a difference that will have a profound impact on the lives of others.
For more information or a confidential discussion of your charitable options, please email or call the CEO & General Counsel, John Floreancig, at 317-217-5344.