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CHARITABLE
REMAINDER
TRUSTS
Donors
draft
a
Trust
document
and
place
assets
(generally
highly
appreciated)
into
the
Trust,
which
entitles
them
to
a
current
year
income
tax
deduction
and
to
bypass
the
capital
gains
tax.
The
deduction
is
dependent
upon
the
ages
of
income
beneficiaries
and
the
length
of
the
term
of
the
Trust.
Trust
income
may
be
either
fixed
(Charitable
Remainder
Annuity
Trust)
or
variable
(Charitable
Remainder
Unitrust)
and
can
be
directed
to
whomever
the
Donor
wishes.
At
the
end
of
the
Trust
term,
the
Trustee
transfers
the
"remaining"
funds
in
the
Trust
to
our
Foundation
(and
any
other
named
"Charitable
Remaindenmen")
A
trust
for
one
life
or
for
husband
and
wife
is
free
of
federal
estate
tax.
Charitable
Remainder
Trusts
enable
Donors
to
maintain
a
high
level
of
control,
flexibility
and
can
be
set
up
for
virtually
any
reason,
including
retirement
or
for
the
funding
of
college
expenses
of
a
child
or
grandchild.
>
CHARITABLE
INCOME
(LEAD)
TRUSTS
A
Charitable
Lead
Trust
pays
Trust
income
to
our
Foundation
for
a
specified
term
-
then
the
Trust
principal
reverts
to
the
Donor
or
passes
to
his/her
heirs.
The
Family
Lead
Trust
is
an
excellent
way
to
"leverage
the
exemption"
and
pass
major
appreciating
assets
of
substantial
value
to
family
members
with
minimum,
if
any
gift
or
estate
tax
cost.
The
Grantor
Lead
Trust
is
created
solely
for
the
purpose
of
obtaining
an
income
tax
deduction.
The
owner
of
the
property
gives
up
the
income
stream
from
the
Trust
for
a
period
of
years
-yet
receives
the
deduction
up
front
for
agreeing
to
give
the
income
to
our
Foundation
for
a
specified
term.
>
IRAS
AND
PENSION
PLANS
Qualified
Retirement
Plans
are
frequently
becoming
the
most
rapidly
growing
assets
for
many
Americans.
Congress
did
not
intend
these
"retirement"
plans
to
be
"inheritance"
plans.
It
is
a
great
shock
to
many
persons
when
they
discover
that
their
IRAs
can
have
dramatic
declines
due
to
cumulative
taxation
-if
transferred
to
children
or
other
non-spousal
heirs.
It
is
not
uncommon
for
persons
to
experience
income
and
estate
taxation
in
excess
of
70%
on
these
dollars
because
of
improper
planning.
Charitable
Planned
Giving
through
our
Foundation,
on
the
other
hand,
helps
Donors
with
good
ideas
and
solutions
that
will
give
your
IRA
dollars
to
you,
your
family,
and
charitable
organizations
-rather
than
to
the
tax
collector!
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