CONVERTING ASSETS INTO INCOME AND A SIGNIFICANT CHARITABLE GIFT
Appreciated assets such as stocks, mutual funds, and real estate held for at least one year provide superior tax benefits when given to Samaritan's Purse. The donor receives a charitable tax deduction for the gift, and also avoids tax on the long-term capital gain.
Often people are interested in making that type of charitable gift, but anticipate a need for additional income. One solution to consider is a Charitable Remainder Trust (CRT).
- A CRT is created and a Trustee is named.
- The assets (stock, mutual funds, real estate, etc.) are transferred by the donor to the CRT.
- A charitable tax deduction is immediately available for a significant portion of the asset value.
- The assets are sold tax-free by the CRT and reinvested to generate income.
- Any capital gain attributed to the assets is not recognized within the CRT.
- Income is paid to the donor for lifetime or for a term of years.
- When income payments cease, the remaining value of the CRT is distributed to Samaritan's Purse to fulfill the legacy plan of the donor and help hurting people in the name of Jesus.
There are many variations of Charitable Remainder Trusts, and determining the best type for each situation requires expertise. Our Legacy Planning Team can assist you and your professional advisors throughout the process.
If you would like to discuss a gift of real estate or a retained life estate, please contact our Legacy Planning Team at stewardship@samaritan.org or Toll-free (833) 345-3422.
