What is a Charitable Remainder Trust?
A Charitable Remainder Trust is a gift that pays an annual income to the donor or designated income beneficiary or beneficiaries for a term of years or for the lifetime of the beneficiaries. At the death of the last income beneficiary, the trust transfers the remaining assets to Denver Botanic Gardens. This gift is a minimum of $100,000. A charitable remainder trust is especially attractive if the gift is some type of appreciated asset currently paying little in the way of a dividend or return.
What are the benefits of a Charitable Remainder Trust?
- An annual income, usually 5 to 7 percent of the trust's asset value.
- Avoidance of any capital gains tax on appreciated assets such as shares of stock or mutual funds or real property, such as real estate.
- A charitable tax deduction in the year of the gift based on the estimated future gift value.
- Potential estate tax savings due to the removal of the assets from your estate.
- A charitable gift to the Gardens, possibly greater than you may have thought possible.
What are the types of Charitable Remainder Trusts?
- A charitable remainder unitrust (CRUT) pays an amount based on a fixed annual percentage of the value of the assets in the trust; the assets in the trust are valued annually. If the trust value changes, the payment to the beneficiary changes; the annual payment could increase or decrease.
- A charitable remainder annuity trust (CRAT) pays a fixed annual return based on the initial valuation of the assets placed in the trust; the trust assets are not revalued; the annual payment is the same each year. If the trust earnings are not sufficient to pay the fixed annual amount, trust assets are sold to make up the difference.
For more information about charitable remainder trusts, please contact us:
Director of Development
Denver Botanic Gardens, Inc.
Tax ID Number