Make a gift of cash, publicly traded securities, mutual funds or real estate and, in turn, receive a stream of income for life or a term of years.
Through a charitable remainder trust, your gift assets are converted to ongoing income payments to you and/or another for a lifetime, term of up to 20 years, or both. At the end of the trust, the remainder is directed to your donor advised fund at the Foundation to provide permanent support to your favorite charities or causes.
The most commonly used form of charitable remainder trusts is the unitrust. With a unitrust, you can make multiple gifts of cash, publicly traded securities and/or mutual funds. A special form of unitrust is available for illiquid assets such as real estate and closely held stock. Your income payments are calculated annually using a set percentage rate and the value of your trust’s assets. Gift Minimum: $100,000/$200,000 for gifts of real estate or closely-held stock.
In some instances an annuity trust, where you make a one-time gift and receive ongoing fixed-income payments, may be appropriate. Your gift to the trust can be cash, publicly traded securities or mutual funds. Gift Minimum: $50,000.
BENEFITS OF GIVING
Receive an income. You, your spouse, family members or friends can be named as income recipients. Quarterly income payments can be made for a lifetime, term of years, or both.
Reduce your taxes. You receive an immediate charitable income tax deduction in the year the gift is made. Any unused charitable deductions can be carried over an additional five years.
For gifts of securities or real estate owned for more than a year, you avoid capital gains taxes on the appreciated value. The trust sells appreciated assets tax free and 100% of the net sale proceeds are reinvested in the trust.
Lower your estate taxes. By taking appreciated assets out of your estate, you’ll reduce the size of your estate and possibly your tax liability. (There may be estate/gift tax consequences if someone other than the donor or the donor’s spouse is named as an income recipient.)
FOR MORE INFORMATION about the Mt. Pleasant Lutheran Church Endowment Fund, please contact: MPLC member and Endowment Fund Treasurer, Dave Zuelke at email@example.com or call the church office at 262-634-6704; or MPLC Member and Financial Advisor, Ryan VanDeLoo at 414-688-7265 or email firstname.lastname@example.org