Charitable Trusts

Created with the help of certified legal and financial advisors, trusts are a good way to manage your assets. The types of trusts available vary widely. The most common are listed below.

• Living Trust—Sometimes called a "Loving Trust," is a popular choice. Just as in a will, a living trust can specify charitable donations by a specific sum, a percentage, specific asset or "what's left." Assets in living trusts are not sheltered from possible estate tax because the trust can be changed at any time.
• Charitable Remainder Trust (CRT)—Often called "the king of trusts" for its flexibility, the CRT is growing in popularity. This trust can pay the donor an income for life and can be funded with any asset of a marketable nature with income deferred, if needed, to a later date.
  
  Charitable remainder trusts are of two major types:
  • Annuity Trust: Funded once, it pays a fixed percentage each year and tends to offer a higher charitable deduction amount.
  • Unitrust: It can be added to many times. Income is based on a percentage of worth at the same date each year. Income is variable, and a significant charitable deduction is allowed for each contribution into the trust. When the trust ends, the assets are distributed to the charities specified in the trust document.
• Charitable Lead Trust—This type of trust is identical to a CRT, except the trust payout of income goes to charitable organizations named by the donor. When the trust ends, the trust assets are transferred back to the family, and little or no estate or gift taxes are due.

Find out more: Contact Michele Brannigan, Senior Gift Officer, at 401-444-4639 or mbrannigan@lifespan.org, or Eric Archer, Planned Giving Specialist,  at 401-423-0083 or PGInfo@lifespan.org.