Charitable Remainder Trust

A Charitable Remainder Trust is a creative tool that establishes a gift that gives you income for life. Assets that have substantially appreciated in value but are providing a low return are well suited as gifts. You may avoid capital gains taxes, lower your income taxes and earn higher returns with this vehicle for giving.

Advantages:

• Annual income, often for donor and spouse

• Income tax deduction at the time the trust is created

• Avoidance of capital gains and gift taxes

Limitations:

• Legal counsel must prepare trust documents

• Annual trust accounting required

Best Assets:

• Appreciated or low-yielding securities

• Real estate

• Cash

• IRA and other retirement plan assets may be used to fund Charitable Remainder Trusts after one's lifetime for the benefit of family members

Charitable Lead Trust

If you want to minimize estate taxes on assets you intend to leave to your children or grandchildren, particularly when significant assets are expected to appreciate, you may want to consider a Charitable Lead Trust.

Advantages:

• Reduces taxes that would otherwise be due on assets left to children and grandchildren

• Allows donor to make a substantial gift over a period of years until assets are passed on to family

Limitations:

• Although part of a long-term gift to one's family, it is considered a temporary gift in terms of philanthropy

Best Assets:

• Rapidly appreciating assets that one intends to pass on to heirs

Please email us at donations@spensershope.com if you are interested in making trust arrangements for the benefit of Spenser's Hope.  Thank you very much for making Spenser's Hope a part of your charitable plans.