Monday, February 11, 2013

Charity Towards Us, Benefits for You

Planned Giving Opportunities to Consider

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A Charitable Remainder Trust (CRT) allows you to realize tax advantages while making an ultimate gift to a Christian ministry such as Greenville Presbyterian Theological Seminary — yet receive income for yourself or your heirs/beneficiaries from the gift as well!

A CRT is funded by a transfer of cash or appreciated assets such as stocks, bonds, mutual funds, or other appreciated property to an irrevocable trust, which then provides current payments to you or other named individuals, followed by a distribution to a charitable beneficiary at the end of the trust period. The trust can be established so that payments will be received for life or for a set number of years.

The amount of your income payments will be a percentage of the initial value of the trust, in the case of a Charitable Remainder Annuity Trust, or a percentage of the value of the trust as of the beginning of each year, in the case of a Charitable Remainder Unitrust.

A federal tax deduction is allowed at the time that you create the CRT.  The amount of the deduction depends on factors such as your age, the payment percentage you select, and the applicable federal rate.

Greenville Seminary's stewardship affiliate, the PCA Foundation, can show you how a CRT might work for you and can also establish your account and serve as trustee of your Charitable Remainder Trust. The minimum amount required to establish a Charitable Trust with the PCA Foundation is $25,000.

If you would like to receive materials about Charitable Remainder Trusts (CRT), including documents necessary to establish a CRT, please click here to request information.