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.
out more: Contact Michele Brannigan, Senior Gift Officer,
at 401-444-4639 or firstname.lastname@example.org,
or Eric Archer, Planned Giving Specialist, at 401-423-0083