Charitable Remainder Trusts
In general, a trust is a legal entity created by a donor in order to manage assets transferred to it by the donor. A charitable remainder trust is a particular kind of trust. Each year during its existence, it makes payments to you or any other individuals you designate. When the trust ends, its remaining assets are distributed to Medical Teams International.
Options for a charitable remainder trust:
- Annuity trust: The amount paid to the income beneficiaries each year may be fixed for the life of the trust. The annuity trust offers the security of fixed payments.
- Unitrust: The amount paid is a stipulated percentage of the trust assets as revalued annually. The unitrust offers the possibility that payments may grow over time (if net trust grows in value at a rate exceeding the stipulated payout rate).
When you establish a charitable remainder trust, you receive an income tax charitable deduction for the present value of the estimated remainder that will be available to support Medical Teams International when the trust terminates.
For many donors, however, an even greater benefit is the avoidance of all tax on the capital gains when appreciated assets are placed in a charitable remainder trust. This means the assets can be sold by the trust and all of the resulting cash can be reinvested in a diversified portfolio of securities.
If you would like additional information, please contact us.
The information on this Web site does not constitute legal, financial, tax or estate planning advice and should not be relied upon as a substitute for such advice. Medical Teams International encourages you to seek the counsel of your own professional advisers and values their involvement as you determine how you would like to proceed.