Life Income Gifts - Charitable Remainder Trusts

A donor may establish a Charitable Remainder Trust (CRT) with gifts of cash, stock, land or other appreciated property. The donor and/or other beneficiaries receive income generated by the assets. Payments are based on a fixed percentage of the value of the trust and continue for a term of up to 20 years or throughout the beneficiaries' lifetimes. As the trust principal changes, so do the payments. A trustee manages the assets for the donors' benefit; upon the beneficiaries' deaths, the trustee distributes the remaining assets to Youth Services.

A CRT provides an immediate tax deduction, increased income for the donor, avoidance of capital gains taxes, and a possible reduction of estate taxes. To be cost-effective, most CRTs start with a minimum principal value of $100,000.

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