Charitable Remainder Annuity Trust
You may be looking for a way to receive fixed income for life or a number of years. You may be concerned about the high cost of capital gains tax with the sale of an appreciated asset. Perhaps you recently sold property and are looking for a way to save on taxes and plan for retirement. A charitable remainder annuity trust may offer the solutions you need.
Take Colette as one example. The burdens of ownership and maintenance of an apartment building were beginning to outweigh the benefits, and Colette considered selling. At first, it seemed that her profit from the sale would be reduced by approximately $600,000 in taxes and the remaining sale proceeds would yield a monthly income that was quite a bit less than the current rental income. Faced with this dilemma, Colette looked to Noah Homes and was introduced to a Charitable Remainder Annuity Trust (CRAT), established in conjunction with Noah Homes, that would provide her with substantial benefits. When a CRAT is established, the creator can sell appreciated assets without paying a capital gains tax, receive a charitable tax deduction and generate income. Now her monthly income from the funds invested is approximately 20% higher than her prior rental income.
Benefits of a charitable remainder annuity trust
- Receive fixed income for life or a term of up to 20 years
- Avoid capital gains tax on the sale of your appreciated assets
- Receive an immediate charitable income tax deduction for the charitable remainder portion of your gift to Noah's Ark Angel Foundation
How a charitable remainder annuity trust works
- You transfer cash or assets to fund a charitable remainder unitrust.
- In the case of a trust funded with appreciated assets, the trust will then sell the assets tax-free.
- The trust is invested to pay fixed income to you or any other trust beneficiaries you select based on a life, lives or a term of up to 20 years.
- You receive an income tax deduction in the year you transfer assets to the trust.
- Our organization benefits from what remains in the trust after all the trust payments have been made.
More on charitable remainder annuity trusts
If you are tired of the fluctuating stock market and want to receive fixed payments, a charitable remainder annuity trust may provide you with the stability you desire. A charitable remainder annuity trust pays a fixed amount each year based on the value of the property at the time the trust is funded.
There are many ways to give. Contact us to discuss your unique needs and desires.