Charitable Remainder Trust

A Charitable Remainder Trust provides the doner with income for life. along with others if chosen, and after death the remaining amount passes to the Foundation. A minimum amount of $50,000 is required. The donor receives an annual distribution of at least 5 percent of the value of the Trust.

The donor is entitled to an income tax deduction and upon death the CRT is not part of the donor's estate. (Remember that the Estate Tax may not disappear until 2010.)

By using appreciated assets, the donor minimizes capital gains tax due, which could help with selling a family business and in other ways. It also offers a way to take highly appreciated stock with low income and have the Trust convert it into higher annual income with minimal income tax results.

Contact the Foundation at 203-267-3177 to find out more about this and other benefits of a charitable remainder trust.

Charitable Lead Trust

This Trust gives the income to the Foundation for a period of years and then distributes the balance to the donor's beneficiaries. It is especially useful in situations for larger estates to help bypass the generation skipping tax.

The Charitable Lead Trust can also be used to establish a Fund in the Foundation over a period of years, while providing for grandchildren in the future.

For information regarding the CLT and whether it would be useful in your legacy planning, please contact the Foundation at 203-267-3177.