Charitable Remainder Trusts

One of the most commonly used forms of charitable tax planning is called the charitable remainder trust. It is a way you can convert a highly appreciated asset (such as real estate or stocks) into a lifetime income while minimizing income and estate taxes. You can benefit from a charitable remainder trust if you own a highly appreciated asset, are in a high income tax bracket, would like to enjoy your profits now but want to avoid capital gains and estate taxes, and you wish to support American Whitewater.

A charitable remainder trust entails transferring the appreciated asset into an irrevocable trust, naming American Whitewater as beneficiary. The trustee (either you or a trust company that specializes in trust management) then sells the asset tax free and re-invests the proceeds in a high quality, well-diversified investment portfolio. For the rest of your life or for a term of years, the trust pays you an income. When you die, the remaining trust assets go to American Whitewater.

A charitable remainder trust can take either of two forms: A charitable remainder annuity trust that pays a fixed-dollar amount each year, which cannot be less than 5% nor more that 50% of the initial fair market value of the trust assets; or a charitable remainder unitrust that pays a fixed percentage not less than 5% nor more than 50% of the trust assets each year, based on an annual revaluation of the trust assets.

In making a gift, we strongly recommend that you consult with your attorney, accountant, and other financial advisors on the legal and tax-related matters affecting your specific situation. For more info on any of these programs, please contact Mark Singleton, at (828) 586-1930 or mark@americanwhitewater.org.

American Whitewater is a tax-exempt, non-profit charitable organization. Donations to American Whitewater are generally tax deductible. American Whitewater’s tax identification number is 23-7083760.