Charitable Remainder Trust

A Charitable Remainder Trust is a trust that receives cash or property from a donor, makes payments for life, lifetimes or a term of years, and then distributes the rest to charity or charities such as the EFCA.  A donor may want to turn appreciated property that produces little or no income into a productive asset without paying capital gains tax on the sale of the property.  A donor contributes the appreciated property to a charitable remainder trust that will sell the property tax-free and then make payments for life or a term of years.

The Benefits

  • Bypass Gain - trust sells property tax-free.
  • Increased Income - trust pays a percentage of its value to the trust beneficiary.
  • Charitable Tax Deduction - donor receives a current federal income tax deduction.
  • Appreciated Asset Ideal - consider using stocks, mutual funds, un-mortaged real estate.

Typical Donor: A donor with cash, real estate or other appreciated property with a value of at least $100,000 who wants increased income.

Charitable Trust Stories

Resources

Contact Us:   For personalized illustration, please email foundation@efca.org or call toll free 800-995-8578.