Charitable Remainder Trust
Many of us would like to make a significant charitable gift, but at the same time aren’t sure how much of our assets we will need in the future. As a result, we hesitate making that significant gift that would bring us so much joy.
There is a way to make a significant charitable gift and receive income in return. It’s called a charitable remainder trust.
At the Saint Paul & Minnesota Foundation, we understand your desire to balance charitable giving with your income needs. That’s why we’ve been offering charitable remainder trusts (CRT) to our donors for decades.
Here’s How a Charitable Remainder Trust Works
Financial Benefits of a CRT
- A CRT provides a steady stream of income for you and/or your loved ones.
- Income can last for life, or a specific number of years.
- Upon creating a CRT, you may be entitled to a charitable income tax deduction.
- When the income stream comes to its scheduled end, the remaining assets in the trust support your favorite nonprofits.
- CRTs can be funded with a variety of assets, such as cash, stock, real estate, farm equipment and more.
- Gifts often avoid immediate recognition of capital gain.
Get Started Today
- Talk with a Foundation Gift Planner about your charitable goals.
- Our experienced staff will create a customized CRT calculation to show how much income you could receive and any potential income tax deduction.
- Easily establish your own CRT with a variety of assets, such as cash, stock, real estate, farm equipment and more.
- You and/or your loved ones receive regular income.
- A significant gift is established for your favorite nonprofits.
How Emma Used a CRT to Honor Her Husband’s Legacy
After her husband Hector’s passing after 53 years of marriage, Emma no longer wanted to maintain the large, single-family home they shared. She wanted to spend more time with her children and grandchildren, and support the charitable causes important to her and Hector. She decided it was time to downsize, but selling her home felt daunting.
Emma and her advisors came up with a plan to sell the home, provide her with lifetime income and provide support for the nonprofits she and Hector loved.
Emma transferred ownership of her home to a charitable remainder trust with the Saint Paul & Minnesota Foundation, with the Foundation named as the Trustee. The home was sold at market price and without any capital gains taxes. The sales proceeds were then used to create a lifetime stream of income for Emma.
Each year Emma uses the income for her needs and donates any extra to nonprofit organizations. At the end of her life, the remaining trust assets will be transferred to the Emma and Hector Ramos Charitable Fund at the Foundation, which will support their favorite causes long into the future.